Multiple Choice
To increase the quantity of money in the economy,the Federal Reserve can
A) print more money and give it to the banks.
B) increase the required reserve ratio.
C) buy government bonds in an open market operation.
D) sell government bonds in an open market operation.
E) cut taxes.
Correct Answer:
Verified
Correct Answer:
Verified
Q114: A commercial bank's reserves are equal to
Q115: Which of the following is a thrift
Q116: Whenever somebody deposits a check from bank
Q117: Which of the following is NOT one
Q118: The Fed purchases $1 million of U.S.government
Q120: Banks create money by<br>A)printing paper money.<br>B)minting coins.<br>C)making
Q121: When a commercial bank receives a deposit,it
Q122: The Fed sells $300 million U.S.government securities
Q123: If the Fed increases the discount rate,commercial
Q124: Assume the desired reserve ratio is 10