If float is predicted to decrease because of good weather,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.
A)defensive;inject
B)defensive;drain
C)dynamic;inject
D)dynamic;drain

Question

Quizplus · Accepted Answer

The manager of the trading desk at the New York Fed bank will likely conduct defensive open market operations to inject reserves because float is predicted to decrease because of good weather. This will help to ensure that there is enough money in the banking system to meet the needs of the economy.

If Float Is Predicted to Decrease Because of Good Weather,the