When the Fed sells government securities, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public.
b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public.
c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public.
d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
e
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During the 1960s, U.S. steel firms argued they needed tariff protection because Germany and Japan were using new mills to make steel since their old mills were destroyed in World War II. Essentially, this argument is a form of the
A) infant-industry argument. B) anti-dumping argument. C) countering foreign subsidies argument. D) national defense argument.
When goods that have intrinsic value are used as money, if their value as money falls, the good:
A. is still useful to people for other reasons. B. loses its intrinsic value. C. is no longer useful to people for other reasons. D. tends to gain in intrinsic value.
The counterpart to the unsold output of firms is the lack of jobs for workers willing to work
a. True b. False Indicate whether the statement is true or false
High-mobility international capital markets exist when:
a. Changes in any of the three key macroeconomic markets affect the other two markets weakly. b. Changes in any of the three key macroeconomic markets affect the other two markets strongly. c. Current international transactions effects outweigh net nonreserve-related international borrowing/lending effects. d. Net nonreserve-related international borrowing/lending effects outweigh current international transactions effects.