The Fed can increase the federal funds rate by
A) selling government securities which increases bank reserves.
B) selling government securities which decreases bank reserves.
C) buying government securities which increases bank reserves.
D) buying government securities which decreases bank reserves.
Ans: B) selling government securities which decreases bank reserves.
You might also like to view...
The FOMC is the agency that insures deposits up to $250,000
Indicate whether the statement is true or false
Because new plastic and recycled plastic are substitutes, as the price of newly produced plastic increases,
A) the demand curve for recycled plastic shifts to the left. B) there is a movement up along the demand curve for recycled plastic. C) there is a movement down along the demand curve for recycled plastic. D) the demand curve for recycled plastic shifts to the right.