DQuestion 9 1 pts Which of the following Fed actions would most likely decrease
ID: 1116775 • Letter: D
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DQuestion 9 1 pts Which of the following Fed actions would most likely decrease the excess reserves of commerical banks? buying government bonds from the public O buying government bonds from commercial banks. O decreasing the discount rate. raising the reserve ratio. DQuestion 10 1 pts Raising the discount rate has the effect of O turning required reserves into excess reserves O turning excess reserves into required reserves O making it less expensive for commercial banks to borrow from the Fed. O making it more expensive for commercial banks to borrow from the Fed.Explanation / Answer
Answer.)
Q9.) raising the reserve ratio
Increasing the reserve ratios reduces the volume of deposits that can be supported by a given level of reserves and, in the absence of other actions, reduces the money stock and raises the cost of credit.
Q10.) Making it more expensive for commercial banks to borrow from central banks
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