Multiple Choice
To reduce the money supply in the economy,the Fed would:
A) increase the discount rate.
B) carry out open market purchases.
C) carry out open market sales and/or lower the discount rate.
D) carry out open market purchases and/or lower the discount rate.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q2: When banks borrow directly from the Fed,the
Q3: The Fed loaned money to J.P.Morgan and
Q4: Which is included in M2?<br>A) currency<br>B) checkable
Q5: Moral hazard occurs when:<br>A) the failure of
Q6: What is systemic risk and how does
Q7: The reserve ratio is the ratio of
Q8: An increase in money growth will cause
Q9: If the Fed buys government bonds,which will
Q10: Which is NOT true of the Federal
Q11: The interest rate that the Fed charges