The federal funds rate is determined
A) by the Board of Governors.
B) by the supply and demand for bank reserves.
C) directly by households' and firms' demands for funds.
D) by the federal government.
Correct Answer:
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Q167: The Federal Reserve buys $10,000 of government
Q168: If the reserve ratio is 10%, and
Q169: If the Fed buys U.S. government bonds
Q170: Which of the following is a market
Q171: The Fed's most important and most frequently
Q173: Lowering the discount rate is
A) a contractionary
Q174: Which of the following is an interest
Q175: Suppose the reserve ratio is 25% and
Q176: The Fed can increase the federal funds
Q177: The discount rate
A) is determined by markets
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