The principal mechanism for directly changing the reserves of the banking system is:

A. The discount rate.
B. The reserve requirement.
C. Open-market operations.
D. The federal funds rate.


C. Open-market operations.

Economics

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Efficiency in risk bearing implies that

A) risk is completely eliminated. B) the least risk-averse party bears most of the risk. C) the most risk-averse party bears most of the risk. D) all of the risk is borne by just one of the parties regardless of the degree of risk aversion.

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During the 1920s, income inequality ______ and the return on schooling was relatively _____

a. increased; low b. increased; high c. decreased; low d. decreased; high

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Vertical equity is not consistent with a regressive tax structure

a. True b. False Indicate whether the statement is true or false

Economics