Following the financial crisis of 2007-2009, banks had a glut of excess reserves. Because of this extraordinary amount of excess reserves being held by banks, the Fed's draining some of them through open market sales of Treasury securities would
A) raise interest rates.
B) have no effect on interest rates.
C) lower interest rates.
D) generate negative interest rates.
Answer: B
Economics
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In recent years, Taiwan has experienced increases in savings and investment. As a result of the higher investment and saving, we expect
i. increases in physical capital. ii. increases in the inflation rate. iii. advances in technology. A) i, ii and iii B) ii and iii C) ii only D) i and iii E) i and ii
Economics
When income increases, the demand curve for an inferior good
A) shifts to the right. B) shifts to the left. C) moves up along the demand curve for the product. D) remains constant.
Economics