The relationship between the Fed's buying of securities and the supply of reserves available to depository institutions is
A) Direct; the Fed buys securities and reserves increase.
B) unrelated to what the Fed does.
C) vertical.
D) inverse.
Correct Answer:
Verified
Q76: The Treasury's "transaction account" balance is
A)considered near
Q77: As chief banker for the U.S. Government,
Q78: What is the most important monetary policy
Q79: Open market operations are executed by the
A)Board
Q80: Open market operations involve
A)the buying and selling
Q82: Changes in bank reserves affect
A)the money supply.
B)credit
Q83: The discount window is
A)a lending facility where
Q84: The discount rate is
A)the interest rate the
Q85: The discount rate
A)used to be changed by
Q86: Ceteris paribus, increases in the discount rate,
A)decrease
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