Open market operations alter the money supply by ________
A) influencing banks' ability to make loans to individuals and corporations
B) adding currency to or withdrawing currency from banks' vaults
C) adding currency to or withdrawing currency from the checking accounts of individuals and corporations
D) influencing banks' ability to make loans to the government
E) none of the above
A
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If a government chooses to finance a budget deficit by borrowing and the expected inflation rate does not change, this will cause the real interest rate to ________ and the nominal interest rate to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Unlike an accountant, an economist measures costs on a(n) ________ basis
A) explicit B) replacement C) historical D) conservative
Natural resources are:
a. not considered scarce because no one pays for them. b. only desired for use in producing other goods. c. included in the category of resources called land. d. available in unlimited quantities.
Which of the following assets is the most liquid?
a. Money. b. Gold. c. Land. d. Stocks.