Solved

When the Federal Reserve Decreases Bank's Reserves Through an Open-Market

Question 219

Multiple Choice

When the Federal Reserve decreases bank's reserves through an open-market operation:


A) deposits increase, currency in circulation increases, and the monetary base remains the same.
B) the monetary base decreases, the money multiplier decreases, and the money supply increases.
C) loans increase, the federal funds rate rises, and the discount rate rises.
D) the monetary base decreases, loans decrease, and the money supply decreases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents