Author Question: An open-market purchase by the Federal Reserve injects excess reserves into the banking system and ... (Read 185 times)

lbcchick · **on:** Jun 30, 2018

An open-market purchase by the Federal Reserve injects excess reserves into the banking system and allows the money supply to expand.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Most of the Fed's assets are held in the form of loans to its member banks.
a. True
b. False
Indicate whether the statement is true or false