Reference no: EM132243673

The Federal Reserve uses a variety of monetary policy tools to achieve which of the following goal(s)?

a. Lower unemployment, currency exchange rates, equitable campaign practices.

b bull market, new companies, and fair trade.

c. full employment, price stability and sustainable economic growth

What is the biggest advantage of borrowing money, such as a loan or a bond, instead of issuing stock in order to raise capital?

a. The business owner does not have to worry about legal liability

b. The interest rate is usually less

c. The current business owner retains complete ownership of the business

Bank Of The North issued many large loans to their customers. An audit of the bank's records shows that the bank is now below the Federal Reserve's minimum reserve requirement. The Fed lends the bank the amount necessary to bring its reserves up to the required level. Bank Of The North will have to pay interest on the money that it borrowed from the Fed. The interest rate that is paid to the Fed on this loan is called the ________.

a. purchasing large amounts of gold

b. ongoing relationships with employment agencies

c. monetary policy tools