Multiple Choice
Which statement is true?
A) Open market operations are seldom conducted any more.
B) The basic way the Fed controls the money supply is by manipulating the discount rate.
C) During periods of severe recession,the Fed tries to push up interest rates.
D) During periods of severe inflation,the Fed tries to push up interest rates.
Correct Answer:
Verified
Correct Answer:
Verified
Q309: What is the effect on the rate
Q310: A major factor contributing to the recession
Q311: Secondary reserves are<br>A)very short-term U.S.government securities.<br>B)vault cash.<br>C)deposits
Q312: An increase in the reserve ratio<br>A)increases the
Q313: If banks face a reserve requirement of
Q315: The writing of a $1,000 check that
Q316: If the Fed sells United States government
Q317: The federal funds rate is<br>A)the interest rate
Q318: Fed open market purchases of government securities
Q319: The responsibility for monetary policy in the