The four main policy tools the Federal Reserve System uses to ...

[Yi-Chen]

The four main policy tools the Federal Reserve System uses to influence the interest rate are setting
 
  A) credit easing, the discount rate, setting tax rates, and setting the required reserve ratio.
  B) the discount rate, open market operations, extraordinary crisis measures and setting the required reserve ratio.
  C) quantitative easing, open market operations, setting tax rates, and setting the required reserve ratio.
  D) quantitative easing, market interest rate and the discount rate, as well as open market operations.
  E) the prime rate, open market operations, extraordinary crisis management and setting the excess reserve ratio.

Question 2

Three variables are related and two of them are plotted in a figure. If the variable that is not measured on either the x-axis or the y-axis changes, then there is
 
  A) a movement along the drawn curve.
  B) no impact on the curve because the variable is not measured on either of the axes.
  C) a shift in the curve.
  D) either a shift in the curve or a movement along the curve, but more information is needed to determine which.
  E) None of the above answers is correct.

[makaylafy]

Answer to Question 1

B

Answer to Question 2

C