Question: The following are methods by which the Fed interacts with our economy: . . . (1) Purchases and sales of US Government securities . .

The following are methods by which the Fed interacts with our economy: . . .

(1) Purchases and sales of US Government securities . . .

(2) Inuencing the rate of interest charged to consumers . . .

(3) Lowering or raising of discount rate charged to member banks . . . (

4) Periodically making adjustments to the CPI . . .

(5) Establishing the exchange rate of the US dollar, relative to specic foreign currencies

Select one: a. (1), (3) and (4) b. (1), (4) and (5) c. (2) and (3) d. (1), (2) and (3) e. All of the above

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