In the market for reserves, assume that the federal funds rate is 4.5%, the discount rate is at 5%. If the Federal Reserve Bank wants to decrease the equilibrium interest rate, they can A raise the required reserve ratio B lower the discount rate C sell securities D raise the discount rate
In the market for reserves, assume that the federal funds rate is 4.5%, the discount rate is at 5%. If the Federal Reserve Bank wants to decrease the equilibrium interest rate, they can A raise the required reserve ratio B lower the discount rate C sell securities D raise the discount rate
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section: Chapter Questions
Problem 4WNG
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In the market for reserves, assume that the federal funds rate is 4.5%, the discount rate is at 5%. If the Federal Reserve Bank wants to decrease the equilibrium interest rate, they can
A raise the required reserve ratio
B lower the discount rate
C sell securities
D raise the discount rate
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