In an open market purchase, the Fed ________ government securities, which ________ bank reserves and ________ the federal funds rate.
A) buys; increases; raises
B) buys; decreases; raises
C) sells; increases; lowers
D) sells; decreases; lowers
E) buys; increases; lowers

Question

Quizplus · Accepted Answer

In an open market purchase, the Fed buys government securities, which increases bank reserves and lowers the federal funds rate.

In an Open Market Purchase, the Fed ________ Government Securities