What is an outcome of the Federal Reserve Board decreasing the reserve requirements?
A) Interest rates increase; the money supply decreases; economic activity increases.
B) Banks make fewer loans; the money supply declines; economic activity slows down.
C) Banks make more loans; the money supply increases; economic activity increases.
D) Interest rates increase; the money supply decreases; economic activity slows down.
E) The money supply decreases; economic activity slows down.
Correct Answer:
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A)rely on checking and savings accounts
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Q49: Open market operations refer to decisions to:
A)buy
Q50: There is an increase in economic activity
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Q53: The actual purchase or sale of investments
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