šŸ·ļø LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION ā†’
Log in
Economics
1
answer
0
watching
107
views

The Federal Reserve Board has the power to
a.increase or decreases the interest rate it charges on the loans it extends to member banks.
b.buy and sell government securities in order to increase or decrease the supply of money in the economy.
c.manipulate the interest rate charged by one bank to another on loans in the federal funds market.
d.All of these are correct.

Watch
1
answer
0
watching
107
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Collen Von
Collen VonLv2
30 Apr 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

When the Federal Reserve conducts open market operations, it..

A. buys or sells government bonds. The money supply increases when it buys bonds and decreases when it sells bonds.

B. manipulates the rate at which it loans to member banks. Higher rates increase the money supply and lower rates decrease the money supply.

C. increases or decreases the required reserve ratio. Increasing the ratio will fuel deposit expansion and an increase to money supply.

D. buys and sells foreign currency. The money supply increases when purchasing occurs and decreases when selling occurs.

When the Federal Reserve conducts open market operations, it:
Ā 
(i) manipulates the rate at which it loans to member banks. Higher rates increase the money supply and lower rates decrease the money supply.
(ii) increases or decreases the required reserve ratio. Increasing the ratio will fuel deposit expansion and an increase in the money supply.
(iii) buys and sells foreign currency. The money supply increases when purchasing occurs and decreases when selling occurs.
(iv) buys or sells government bonds. The money supply increases when buys bonds and decreases when sells bonds.

When the Federal Reserve conducts open market operations, it...

A. buys or sells government bonds. The money supply increases when buys bonds and decreases when sells bonds.

B. manipulates the rate at which it loans to member banks. Higher rates increase the money supply and lower rates decrease the money supply.

C. increases or decreases the required reserve ratio. Increasing the ratio will fuel deposit expansion and an increase in the money supply.

D. buys and sells foreign currency. The money supply increases when purchasing occurs and decreases when selling occurs.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in