Multiple Choice
If the Federal Reserve wants to increase the availability of money and credit, it can:
A) lower the discount rate.
B) raise the reserve requirements.
C) sell U.S. government bonds to the public.
D) encourage banks to increase their prime lending rate.
Correct Answer:

Verified
Correct Answer:
Verified
Q40: If there is a recession, the Fed
Q41: If loans are $300,000, checkable deposits are
Q42: Which of the following statements is correct
Q43: Which of the following would appear on the
Q44: Best National Bank operates with a 20
Q46: If your bank faces a 20 percent
Q47: If the Fed decides to use an
Q48: Exhibit 15-7 Lower Walloon National Bank<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg"
Q49: Exhibit 15-3 Balance sheet of Tucker National
Q50: When the Fed buys federal government securities