The principal immediate target of policy for most central banks consists of the volume of reserves available to the banking system. The total supply of reserves can be changed by:
A) Conducting open-market operations
B) Making loans to depository institutions through a credit or discount window
C) Changing the legal reserve requirements applicable to deposit
D) All of the above
E) Choices A and B only
Correct Answer:
Verified
Q20: Regulations G, T and U contain the
Q21: The type of open-market operation that results
Q22: The central bank that uses U.S. dollar-euro
Q23: The central bank that affects reserves available
Q24: The principal immediate target of policy for
Q26: The Employment Act of 1946 committed the
Q27: An increase in goods purchased from foreign
Q28: The Federal Reserve influences the Federal Funds
Q29: Nearly all central banks appear to work
Q30: The majority of loans granted through the
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