Home / Questions / Open market sale of government securities by the Fed decreases the federal funds rate. 65
Open market sale of government securities by the Fed decreases the federal funds rate.
65) Open market purchase of government securities by the Fed increases the federal funds rate.
66) Contractionary monetary policy increases the federal funds rate.
67) Expansionary monetary policy decreases the federal funds rate.
68) During the 1920s, the discount rate was the major policy tool of the Federal Reserve.
69) The primary monetary policy tool is reserve requirements.
70) The discount rate is influenced by Fed actions whereas the Fed sets the federal funds rate.
71) Open market operations are an appropriate tool for day-to-day changes in monetary policy.
72) Real money supply expresses the money supply in terms of real goods and services.
73) The quantity of money demanded is positively related to the interest rate.
Dec 07 2019 Read more Less More
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