To change the federal funds rate, the Fed
A) coordinates with banks on establishing the new rate.
B) tells banks how much to charge.
C) uses open market operations to change the quantity of reserves.
D) changes the income tax rate on interest income.
E) increases or removes money from the stock market.
C
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Which of the following forms of unemployment probably imposes the greatest personal costs?
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) voluntary unemployment.
Which of the following is true of Carter administration?
a. Dramatic expansion of Social Security and Medicare programs b. Large income tax cuts, especially for the wealthy c. Deregulation of airlines, trucking, railroads and the financial services industry d. Government control of gasoline and food prices