Multiple Choice
The money supply decreases if the Fed
A) sells Treasury bonds.The larger the reserve requirement,the larger the decrease will be.
B) sells Treasury bonds.The smaller the reserve requirement,the larger the decrease will be.
C) buys Treasury bonds.The larger the reserve requirement,the larger the decrease will be.
D) buys Treasury bonds.The smaller the reserve requirement,the larger the decrease will be.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q21: If the Federal Reserve increases the interest
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
Q27: When there is a reserve requirement,banks<br>A)must hold