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Question
1 ptwhich of the following is a traditional tool used by the fed during recessions?quantitative easinghigher interest ratesopen market operationscoins and paper currencyquestion 51 ptswhich of the following terms is used to describe the proportion of deposits that banks are legally required to deposit with the central bankdiscount requirementsdeposit requirementsreserve requirementsmonetary requirements
For the first question: Quantitative easing is an unconventional tool, higher interest rates would worsen recessions, and coins/currency is not a targeted recession tool. Open market operations (buying securities to inject money) is a traditional Fed recession tool.
For the second question: The specific term for the mandatory deposit proportion banks keep with the central bank is reserve requirements, which matches the definition provided.
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- open market operations
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