Which of the following Fed actions would both increase the money supply?
a. buy bonds and raise the reserve requirement
b. buy bonds and lower the reserve requirement
c. sell bonds and raise the reserve requirement
d. sell bonds and lower the reserve requirement
Ans: b. buy bonds and lower the reserve requirement
You might also like to view...
In 2009, Germany's capital account was -$135 million. This implies that
A) Germany invested more in other countries than those countries invested in Germany. B) Germany's currency must have appreciated during 2009. C) Germany imported more goods from its trading partners than it exported. D) Germany's official settlements account in 2009 must have been positive.
Stock in Creole Cuisine Restaurants is selling at $25 per share. Creole Cuisine had earnings of $5 a share and a dividend yield of 5 percent. The dividend is
a. $0.25 and the price-earnings ratio is 5. b. $.25 and the price-earnings ratio is 6.7. c. $1.25 and the price-earnings ratio is 5. d. $1.25 and the price-earnings ratio is 6.7.