Question

    The US Federal Reserve recently maintained interest rates between 5.25%-5.5%. What is the primary reason for this decision?

    A To stimulate economic growth Correct Answer Incorrect Answer
    B To control inflation by reducing borrowing Correct Answer Incorrect Answer
    C To encourage foreign investment Correct Answer Incorrect Answer
    D To increase stock market activity Correct Answer Incorrect Answer
    E To lower the unemployment rate Correct Answer Incorrect Answer

    Solution

    The Federal Reserve aims to control inflation by raising interest rates, which reduces borrowing and slows down economic activity.

    Practice Next

    Relevant for Exams: