Refer to the diagram for the federal funds market. If the Fed wants to increase reserves from $200 billion to $300 billion it should:





A.  buy bonds from banks and the public.

B.  sell bonds to banks and the public.

C.  buy bonds from banks and sell them to the public.

D.  buy bonds from the public and sell them to banks.

A.  buy bonds from banks and the public.

Economics

You might also like to view...

A legal entity owned by individual stockholders:

a. cooperative b. corporation c. trade association d. limited partnership e. sole proprietorship

Economics

Which one of the following is NOT a determinant of demand?

A. future price expectations B. prices of related goods C. income D. cost of inputs in production

Economics