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
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
举一反三
- 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
- Which of the following is not an example of expansionary monetary policy? A: An open-market purchase of securities B: A reduction in reserve ratio C: A reduction in income tax rates D: A reduction in the discount rate
- To increase the money supply, the Fed could() A: sell<br/>government bonds. B: decrease<br/>the discount rate. C: increase<br/>the reserve requirement. D: None<br/>of the above is correct.
- The following is the expansionary monetary policy is（ ）. A: Increase money supply B: The central bank conducts reverse repo operations on the open market C: Reduce the rediscount rate D: Lower the benchmark deposit rate E: Central Bank issues bonds
- The federal funds rate is the interest rate that A: banks charge their best corporate customers B: banks have to pay when they get a loan from the Fed C: banks have to pay when they get a loan from another bank D: banks receive from the Fed for the reserves they hold as deposits at the Fed E: the federal government pays on its three-month Treasury bills