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If the Market Federal Funds Rate Were Below the Target

Question 9

Multiple Choice

 If the market federal funds rate were below the target rate, the response from the Fed would likely be to: ?


A)  raise the IOER rate.?
B)  purchase U.S. Treasury securities.?
C)  sell U.S. Treasury securities.?
D)  raise the discount rate.

Correct Answer:

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