Which of the following is a tool that is used by the Fed to control the quantity of money?
A: open market operations
B: excess reserves
C: government expenditure multiplier
D: real interest rate
A: open market operations
B: excess reserves
C: government expenditure multiplier
D: real interest rate
举一反三
- 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
- Which of the following is the monetary policy tools?（ ） A: Open market operation B: Interest rate C: Local government financing vehicles D: Money aggregate
- The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that A: the money market is in equilibrium. B: people buy bonds and the interest rate falls. C: people sell bonds and the interest rate falls. D: bond prices fall and so the interest rate falls.
- Which of the following is a tightening monetary policy ( ). A: Central bank raises the rediscount rate B: Increase the money supply C: The central bank conducts reverse repo operations on the open market D: Central bank reduces the rediscount rate
- The quantity of real money balances demanded depends on the ____ A: nominal interest rate. B: rate of inflation. C: nominal money supply. D: price level.