Multiple Choice
If the Federal Reserve increases the interest rate on bank deposits at the Fed,banks will want to hold
A) fewer reserves,so the money multiplier will fall.
B) fewer reserves,so the money multiplier will rise.
C) more reserves,so the money multiplier will fall.
D) more reserves,so the money multiplier will rise.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Suppose banks decide to hold more excess
Q17: When the Fed conducts open-market purchases,<br>A)it buys
Q18: During a bank run,depositors decide to hold
Q19: The federal funds rate is the interest
Q20: During wars the public tends to hold
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
Q26: Which of the following can the Fed