Multiple Choice
During wars the public tends to hold relatively more currency and relatively fewer deposits.This decision makes reserves
A) and the money supply increase.
B) and the money supply decrease.
C) increase,but leaves the money supply unchanged.
D) decrease,but leaves the money supply unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: To increase the money supply,the Fed could<br>A)sell
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
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