The most important, most convenient, and most flexible way in which the Federal Reserve affects the supply of bank reserves is through:
A. conducting open-market operations.
B. changing interest rates.
C. changing bank reserve requirement ratios.
D. changing the Federal Reserve discount rate.
Answer: A
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The steps in the transmission of monetary policy are
A) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand. B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand. C) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand. D) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate and leads to an increase in aggregate demand. E) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply.
A manager is participating in an auction where values or common or correlated and is not 100 percent certain of the value of the item. The manager ________ reduce their bid below their estimated value to ________ the winner's curse.
A) should; avoid B) should; enjoy C) should not; enjoy D) should not; avoid
Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. The GDP Price Index rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The GDP Price Index and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
In October 2008, __________ percent of the unemployed workers in the United States were collecting unemployment benefits.
A. 32 B. 38 C. 46 D. 64