When the Fed buys bonds from the public, it
A. Increases the flow of reserves to the banking system.
B. Decreases the money supply.
C. Decreases the discount rate.
D. Decreases the flow of reserves to the banking system.
Answer: A
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Investment is defined as the purchase of
A) financial assets and inventories only. B) new capital goods but not additions to inventories. C) any financial asset only. D) new capital goods and additions to inventories. E) additions to inventories only.
When money is used to set the value of goods such as cars, DVD players, and TVs, money is serving as a
A. medium of exchange. B. standard of value. C. store of value. D. standard of deferred payment.
While calculating a nation's output per hour worked, the farming sector is excluded. This is because their output is not sold in the market and their productivity is hard to measure
a. True b. False Indicate whether the statement is true or false
The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemployment rate
a. True b. False Indicate whether the statement is true or false