Which action is the Federal Reserve MOST likely to take to curb inflation?
A) lower the discount rate
B) lower reserve requirements
C) raise taxes
D) sell securities in the open market

Respuesta :

Answer:

D. Raise the federal interest rate.

Explanation:

That is the correct answer, Your welcome.

A federal reserve system is made of 12 regional federal banks and is responsible for a specific geographical area.

  • They include conducting national, monetary, and regulating banks. Their task is to maintain financial stability. They provide banking services.
  • The action that will most likely lead to stop inflation is sold securities in the open markets.
  • As the banks can easily make investments and stop rising prices.

Hence the option D is correct.

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