Multiple Choice
Suppose the Fed forecasts a reduction in excess reserve holdings by banks.It might offset the effect of this on the money supply by
A) buying government securities.
B) lowering the required reserve ratio.
C) lowering the discount rate.
D) selling government securities.
E) a,b,and c
Correct Answer:

Verified
Correct Answer:
Verified
Q146: Which of the following will cause the
Q147: If the Fed lowers the required reserve
Q148: When the Fed was created,its governing body
Q149: If a bank has zero excess reserves
Q150: A decrease in the required reserve ratio
Q152: When the federal government incurs a budget
Q153: The boundaries of the Federal Reserve districts
Q154: If the Fed purchases government securities from
Q155: Which of the following will not increase
Q156: Members of the Board of Governors of