The stock of high-powered money is increased when the Fed
A) sells securities in the open market
B) increases the reserve requirement
C) sells foreign exchange (francs, yen, etc.)
D) makes loans to banks
E) none of the above
Correct Answer:
Verified
Q11: The formula for the money multiplier (mm)
Q12: If the currency-deposit ratio is 23% and
Q13: While the Fed can influence the money
Q14: Other things remaining the same, the smaller
Q15: The reserve-deposit ratio is likely to increase
Q17: Banks tend to hold some excess reserves
A)for
Q18: High-powered money
A)earns more interest than other forms
Q19: Assume many more stores agree to accept
Q20: An increase in the market interest rate
Q21: If the Fed imposed a 100% reserve
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