When the Federal Reserve System wants to increase the money supply, which of the following actions would the Fed choose?
a. It purchases U.S. government securities.
b. It increases the discount rate.
c. It increases the required reserve ratio.
d. It sells bonds on the open market.
a
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If different people own the different stages of production of a commodity, a contract or market relationship helps to minimize transaction risks and creates economic value
Indicate whether the statement is true or false
The process in which financial institutions accept savings from businesses, households, and governments and lend the funds to other businesses, households, and governments is called
A. adverse selection. B. moral hazard. C. central banking system. D. financial intermediation.
Profits of private corporations are divided into:
What will be an ideal response?
Productive efficiency refers to
A. setting TR = TC. B. maximizing profits by producing where MR = MC. C. cost minimization, where P = minimum ATC. D. production at a level where P = MC.