Multiple Choice
Which of the following can the Fed do to change the money supply?
A) change reserves or change the reserve ratio
B) change reserves but not change the reserve ratio
C) change the reserve ratio but not change the reserve ratio
D) neither change reserves nor change the reserve ratio
Correct Answer:
Verified
Correct Answer:
Verified
Q21: If the Federal Reserve increases the interest
Q22: The money supply decreases if the Fed<br>A)sells
Q23: When the Fed conducts open-market purchases,<br>A)banks buy
Q24: Bank runs<br>A)will affect neither the money supply
Q25: To decrease the money supply,the Fed can<br>A)buy
Q27: When there is a reserve requirement,banks<br>A)must hold
Q28: At one time,people in a certain country
Q29: Suppose banks decide to hold fewer excess
Q30: The discount rate is the interest rate
Q31: To decrease the money supply,the Fed could<br>A)sell