To increase the money supply, the Fed could()
A: sell
government bonds.
B: decrease
the discount rate.
C: increase
the reserve requirement.
D: None
of the above is correct.
A: sell
government bonds.
B: decrease
the discount rate.
C: increase
the reserve requirement.
D: None
of the above is correct.
举一反三
- To increase the Money Supply, a Central Bank can: ( ) A: Increase<br/>the Reserve Requirement. B: Reduce<br/>the Reserve Requirement. C: None<br/>of the above.
- Which of the following actions by the Fed would reduce the money supply? A: an open-market purchase of government bonds B: a reduction in banks’ reserve requirements C: an increase in the interest rate paid on reserves D: a decrease in the discount rate on Fed lending
- Higher<br/>government deficits ________ the supply of bonds and shift the supply<br/>curve to the <br/>________,<br/>everything else held constant. A: increase; left B: increase; right C: decrease; left D: decrease; right
- The money supply increases when the Fed A: buys bonds. The increase will be larger the smaller the reserve ratio is. B: buys bonds. The increase will be larger the larger the reserve ratio is. C: sells bonds. The increase will be larger the smaller the reserve ratio is. D: sells bonds. The increase will be larger the larger the reserve ratio is.
- If<br/>the Fed expects currency holdings to rise, it conducts open market<br/>______to offset the expected _______in reserves. A: purchases;<br/>increase B: purchases;<br/>decrease C: sales;<br/>increase D: sales;<br/>decrease