Multiple Choice
Prior to 2008, the primary tool used by the Fed to control the money supply was
A) the manipulation of the required reserve ratio banks must hold against their checking deposits.
B) the extension of loans to financial institutions.
C) the buying and selling of stocks and corporate bonds.
D) the buying and selling of U.S. Treasury securities.
Correct Answer:
Verified
Correct Answer:
Verified
Q134: Excess reserves of banks equal<br>A) actual reserves
Q135: Suppose the Fed purchases $100 million of
Q136: Table 13-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9063/.jpg" alt="Table 13-2
Q137: Briefly explain the three functions of money.
Q138: Which of the following lists two things
Q140: Though many assets can be used as
Q141: Which of the following lists two things
Q142: Excess reserves are<br>A) checking deposits that are
Q143: When the Federal Reserve sells government bonds
Q144: In the United States, the purchasing power