A sound policy to combat a temporary liquidity shortage in the banking system would be
A) a reduction in the discount rate.
B) a decrease in the discount rate.
C) the purchase of government securities by the Fed under a repurchase agreement.
D) the sale of government securities by the Fed under a repurchase agreement.
D
Economics
You might also like to view...
Tax can fall disproportionately on certain income groups. High-income households (HH) are impacted by gasoline taxes the most.
a. true b. false
Economics
A bank has $250 in checking deposits, $1,000 in savings deposits, $1,200 in time deposits, $1,000 in loans to businesses, $400 in outstanding credit card balances, $800 in government securities, $25 in currency in its vault, and $25 in deposits at
the Fed. Of these, ________ are part of M2. A) $2,600 B) $2,450 C) $3,450 D) $2,850 E) $2,200
Economics