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18 Aug 2020
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..
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.
Samantha BalandoLv7
11 Oct 2020