Free Practice Question
CR · Critical Reasoning
505-555
Conclusion
Over the last eight years, the Federal Reserve Bank has raised the prime interest rate by a quarter-point more than ten times. The Bank raises rates when its Board of Governors fears inflation and lowers rates when the economy is slowing down.
Which of the following is the most logical conclusion for the paragraph above?
Which of the following is the most logical conclusion for the paragraph above?
Answer Choices
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The Federal Reserve should be replaced with regional banks that can respond more quickly to changing economic conditions.
B
The Federal Reserve has raised the prime rate in recent years to try to control inflation.
C
The economy has entered a prolonged recession caused by Federal Reserve policies.
D
The monetary policy of the United States is no longer controlled by the Federal Reserve.
E
The Federal Reserve has consistently raised the prime rate over the last several years.
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Difficulty
505-555
Type
CR