Which of the following Fed actions increases the excess reserves of commercial banks?
A. Selling bonds to the public
B. Selling bonds to commercial banks
C. Increasing the discount rate
D. Lower the reserve ratio
D. Lower the reserve ratio
Economics
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If UIP holds and the home currency is expected to appreciate by 4%, then the home interest rate is:
a. 6% b. 5% c. 4% d. Not enough information is provided to answer the question
Economics
What is one service the Fed performs for the Treasury Department?
(A) It processes payments, such as Social Security checks. (B) It auctions government bills. (C) It collects federal taxes. (D) It selects the Secretary of the Treasury.
Economics