Open-market operations are the tool used least frequently by the Fed to alter the reserves of the banking system.

When the overall price level in an economy increases, the interest rate in that economy tends to increase as well. This increase in the interest rate makes investing in domestic assets look more attractive than investing in assets in other countries, so the demand for foreign assets decreases. This is called the _____

a. interest rate effect b. exchange rate effect c. wealth effect d. accelerator effect

Barter is:

A. the direct trade of goods and services for other goods and services. B. the extension of credit to borrowers using funds raised from savers. C. a means of channeling funds from savers to borrowers with productive investment opportunities. D. an equity claim to ownership.