Multiple Choice
The Fed's control of the money supply is not precise because
A) Congress can also make changes to the money supply.
B) there are not always government bonds available for purchase when the Fed wants to perform open-market operations.
C) the Fed does not know where all U.S.currency is located.
D) the amount of money in the economy depends in part on the behavior of depositors and bankers.
Correct Answer:
Verified
Correct Answer:
Verified
Q31: To decrease the money supply,the Fed could<br>A)sell
Q32: Which of the following will not help
Q33: People hold $400 million of bank deposits
Q34: The money supply decreases if<br>A)households decide to
Q35: Other things the same,if reserve requirements are
Q37: The money supply increases when the Fed<br>A)buys
Q38: What does the Fed auction at the
Q39: Scenario 29-2.<br>The Monetary Policy of Tazi is
Q40: If the discount rate is lowered,banks borrow<br>A)less
Q41: Reserves increase if the Federal Reserve<br>A)raises the