A sound policy to combat a temporary liquidity shortage in the banking system would be
A) a reduction in the discount rate.
B) a decrease in the discount rate.
C) the purchase of government securities by the Fed under a repurchase agreement.
D) the sale of government securities by the Fed under a repurchase agreement.
D
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In order to influence the interest rate, the Federal Reserve System can immediately adjust the
A) reserves of the banking system. B) inflation level. C) unemployment rate. D) taxes that citizens must pay. E) amount the government borrows.
Prior to 1970, mortgages were ________ resold in the secondary market
A) never B) often C) rarely D) always
Political instability is a deterrent to long-term private investment
a. True b. False Indicate whether the statement is true or false
The only way to reduce the national debt is to run budget surpluses.
Answer the following statement true (T) or false (F)