Federal Reserve actions that offset unexpected monetary developments and contribute to the smooth everyday functioning of the economy are called
A) defensive actions.
B) dynamic actions.
C) accommodative actions.
D) automatic actions.

Question

Quizplus · Accepted Answer

Defensive actions by the Federal Reserve are measures taken to counteract unforeseen monetary developments, ensuring the stability and smooth operation of the economy on a day-to-day basis. These actions are aimed at maintaining the existing monetary policy stance rather than changing it.

Federal Reserve Actions That Offset Unexpected Monetary Developments and Contribute