Which of the following combinations would unambiguously increase the supply of money?
a. The Fed pays a higher interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase of government securities and raises the discount rate.
c. The Fed pays a higher interest rate on bank reserves and conducts an open market purchase of government securities.
d. All of the above would produce conflicting effects on the supply of money
c
Economics
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If you buy a bond issued by Intel, the bond is a(n):
A) liability to Intel and an asset to you. B) liability to you and an asset to Intel. C) liability to both you and Intel. D) asset to both you and Intel.
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Explain the difference between a money-market deposit account and a money-market mutual fund.
What will be an ideal response?
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