Multiple Choice
When the Fed sells securities, the total funds of commercial banks ____ by the market value of the securities sold by the Fed. This activity initiated by the FOMC's policy directive is referred to as a ____ of money supply growth.
A) increase; loosening
B) decrease; loosening
C) increase; tightening
D) decrease; tightening
E) None of these are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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