Multiple Choice
When the Fed purchases securities, the total funds of commercial banks ____ by the market value of securities purchased by the Fed. This activity initiated by the FOMC's policy directive is referred to as a(n) ____ of money supply growth.
A) increase; loosening
B) decrease; tightening
C) decrease; loosening
D) increase; tightening
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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