Which of the following are the tools in the Fed’s toolbox? Check all that apply. a) repurchase agreements b) required reserve ratio (r) c) interest on reserves rate d) discount rate
Which of the following are the tools in the Fed’s toolbox? Check all that apply. a) repurchase agreements b) required reserve ratio (r) c) interest on reserves rate d) discount rate
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 3.7P
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1. Which of the following are the tools in the Fed’s toolbox? Check all that apply.
a) repurchase agreements
b) required reserve ratio (r)
c) interest on reserves rate
d) discount rate
2. The Fed’s primary tool for changing the money supply is __(1)__. This tool allows the Fed to __(2)__ change __(3)__.
(1) the discount rate, interest on reserves (ior) rate, the reserve requirement, or open-market operations
(2) directly or indirectly
(3) the federa funds rate, interest on reserves (ior) rate, the reserve requirement, or the discount rate
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