⢠In terms of the demand for money, the interest rate is:
A) the price of borrowing money. B) the return on money that is saved for the future. C) the rate at which current consumption can be exchanged for future consumption. D) the opportunity cost of holding money.
⢠When the Fed conducts open market operations, the Fed buys and sells government securities to:
A) the private sector. B) foreign countries only. C) state and local government agencies only. D) the U.S. Treasury.
An open-market purchase of government bonds by the Fed results in ________ in bank reserves and ________ in the supply of money.
A) an increase; a decrease B) a decrease; a decrease C) an increase; an increase D) a decrease; an increase â¢
A decrease in the required reserve ratio:
A) will increase the money supply. B) will decrease the money supply. C) will not change the money supply. D) will decrease the discount rate.
⢠In terms of the demand for money, the interest rate is:
A) the price of borrowing money. B) the return on money that is saved for the future. C) the rate at which current consumption can be exchanged for future consumption. D) the opportunity cost of holding money.
⢠When the Fed conducts open market operations, the Fed buys and sells government securities to:
A) the private sector. B) foreign countries only. C) state and local government agencies only. D) the U.S. Treasury.
An open-market purchase of government bonds by the Fed results in ________ in bank reserves and ________ in the supply of money.
A) an increase; a decrease B) a decrease; a decrease C) an increase; an increase D) a decrease; an increase â¢
A decrease in the required reserve ratio:
A) will increase the money supply. B) will decrease the money supply. C) will not change the money supply. D) will decrease the discount rate.
