Money is created when
A) Congress enacts legislation providing for increased bank reserves.
B) depository institutions make loans.
C) the Federal Reserve Board of Governors increases the discount rate.
D) Congress reduces taxes.
E) Congress increases spending.
Correct Answer:
Verified
Q188: Reserves must be deposited in the Federal
Q189: Banks may hold the reserves for their
Q190: Statement I: When the Fed sells U.S.government
Q191: Statement I: As business and banking activity
Q192: The federal funds rate is
A)the interest rate
Q194: The interest percent charged by the Fed
Q195: If the Fed buys securities on the
Q196: When a commercial bank borrows from a
Q197: The Federal Open Market Committees
A)include all seven
Q198: Federal funds are
A)reserves that are loaned out
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