Multiple Choice
Which of the following statements is false?
A) The Fed has the legal authority to create money out of thin air.
B) There is a direct relationship between the money supply and the required reserve ratio.
C) The Fed can cause money to disappear into thin air.
D) The federal funds market is a market in which banks can borrow money from other banks.
Correct Answer:
Verified
Correct Answer:
Verified
Q51: The Fed has been called "the lender
Q52: The Banking Act of 1935 changed the
Q53: The Fed can change the money supply
Q54: Which of the following Fed actions will
Q55: The president of the Federal Reserve District
Q57: Refer to Exhibit 13-2.What word (up or
Q58: If the federal funds rate falls below
Q59: If the Fed wants to increase the
Q60: The Federal Reserve System came into existence
Q61: To decrease the money supply,the Fed may