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    Financial Markets and Institutions Study Set 1
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    Exam 10: Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
  5. Question
    The Federal Reserve Will Engage in an Outright Purchase If
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The Federal Reserve Will Engage in an Outright Purchase If

Question 12

Question 12

Multiple Choice

The Federal Reserve will engage in an outright purchase if it wants to ________ reserves ________ in the banking system.


A) increase; permanently
B) increase; temporarily
C) decrease; temporarily
D) decrease; permanently

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