The sale of $1 billion of government securities by the Fed is an example of
A) a change in the required reserve ratio.
B) a multiple contraction of the quantity of money.
C) a last resort loan.
D) an open market operation.
Correct Answer:
Verified
Q263: Excess reserves are
A) actual reserves minus desired
Q264: Bank managers lend the excess reserves created
Q265: If required reserves are $150 and deposits
Q266: The reserve ratio is a bank's reserves
Q267: A bank with $100 million in deposits
Q269: A bank's required reserves are calculated by
Q270: Money is created by
A) banks paying for
Q271: If the desired reserve ratio is 3
Q272: Banks create money whenever they
A) accept a
Q273: Whenever actual reserves exceed desired reserves, the
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