Solved

If the Fed Wants to Decrease the Amount of Deposits

Question 17

Multiple Choice

If the Fed wants to decrease the amount of deposits that banks hold,it can


A) buy government bonds in an open market operation.
B) sell government bonds in an open market operation.
C) force banks by decree to do so.
D) sell domestic deposits to foreign investors.
E) None of these

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions