Multiple Choice
If the federal funds rate were above the level the Federal Reserve had targeted,the Fed could move the rate back towards its target by
A) buying bonds.This buying would reduce reserves.
B) buying bonds.This buying would increase reserves.
C) selling bonds.This selling would reduce reserves.
D) selling bonds.This selling would increase reserves.
Correct Answer:

Verified
Correct Answer:
Verified
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
Q42: If the reserve requirement is 10 percent,which
Q43: Which tool of monetary policy does the
Q45: When the Fed conducts open-market sales,<br>A)it sells
Q46: If the money multiplier is 3 and
Q47: When the Fed purchases $1000 worth of
Q48: If the reserve ratio is 15 percent,and
Q49: If people decide to hold more currency