The demand for reserves is __________ related to the federal funds rate because banks __________ their excess reserves as the federal funds rate falls.
A) inversely; increase
B) inversely; decrease
C) positively; increase
D) positively; decrease
Correct Answer:
Verified
Q28: One effect of a shrinking economy is
A)
Q29: The supply of reserves _ when the
Q30: Which of the following cannot be controlled
Q31: The Federal Reserve uses the federal funds
Q32: If the federal funds rate is below
Q34: The relationship between money and spending is
A)
Q35: Federal funds rate targets and reserve targets
Q36: Reserve targets and federal funds targets are
Q37: Federal funds are
A) funds owned by the
Q38: If the federal funds rate is _
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