🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
133
views
26 Feb 2020

When the Federal Reserve Bank i.e. FED conducts open-market purchases:

 

a. it increases the money supply.

b. it decreases the money supply.

c. it has no effect on the money supply.

d. All of these.

 

Watch
1
answer
0
watching
133
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Collen Von
Collen VonLv2
26 Feb 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

When the Fed conducts an open market sale, it:
 
(i) increases the money supply and raises interest rates. 
(ii) increases the money supply and lowers interest rates. 
(iii) reduces the money supply and raises interest rates.
(iv) reduces the money supply and lowers the interest rate. 
 

When the Fed conducts an open market purchase, the Fed buys securities from banks and the money supply increases

As a result of the open market purchase, the

a. Money demand curve will shift to the left.

b. Money supply curve will shift to the left.

c. Money supply curve will shift to the right.

d. Money demand curve will the right.

Describe the effect on the money supply of the following action by the Federal Reserve bank (Fed):

(a) The Fed purchases $20 million worth of U.S. treasury bonds.

(b) The Fed increases the discount rate.

(c) The Fed decreases the discount rate.

(d)The Fed sells $40 million worth of U.S. T-bills.

(e) The Fed decreases the required reserve ratio.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in