Business, 27.04.2021 16:10 maddiefoley17
When the Federal Reserve decreases bank's reserves through an open-market operation:
a. deposits increase, currency in circulation increases, and the monetary base remains the same.
b. the monetary base decreases, the money multiplier decreases, and the money supply increases.
c. loans increase, the federal funds rate rises, and the discount rate rises.
d. the monetary base decreases, loans decrease, and the money supply decreases.
Answers: 2
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When the Federal Reserve decreases bank's reserves through an open-market operation:
a. deposits...
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