This topic contains a solution. Click here to go to the answer

Author Question: When banks hold a large amount of excess reserves, which of the following tools would the Fed most ... (Read 158 times)

K@

  • Hero Member
  • *****
  • Posts: 608

Question 1

When banks hold a large amount of excess reserves, which of the following tools would the Fed most likely use when it wants to increase the interest rate?


◦ raising the reserve requirement
◦ raising the interest rate it pays to banks on their reserves
◦ raising the discount rate
◦ making an open market purchase

Question 2

When banks hold a large amount of excess reserves, which of the following tools would the Fed most likely use to encourage banks to lend more of these excess reserves?


◦ lowering the reserve requirement
◦ lowering the interest rate it pays to banks on their reserves
◦ lowering the discount rate
◦ making an open market sale


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by K@ on Apr 19, 2019

smrerig

  • Sr. Member
  • ****
  • Posts: 325
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly





 

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

For a complete list of videos, visit our video library