HW_5_Questions_Chapter_8[1]

HW_5_Questions_Chapter_8[1] - open market sales and raising...

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HW 5 Chapter 8 Chapter 8 End-of-Chapter Questions Chapter Questions 7, 8, 12 Quantitative problems Questions 4-5 Multiple Choice 1. Open market purchases _____ nonborrowed reserves and cause the federal funds rate to _____. decrease; fall increase; rise increase; fall decrease; rise 2. Which of the following sets of Fed actions unambiguously will increase the federal funds interest rate? open market purchases and lowering reserve requirements lowering the discount rate and raising reserve requirements raising the discount rate and open market purchases
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Unformatted text preview: open market sales and raising reserve requirements 3. The Federal Reserve will engage in a repurchase agreement if it wants to _____ reserves _____ in the banking system. increase; temporarily decrease; permanently increase; permanently decrease; temporarily 4. The Fed's primary monetary policy tool is the discount rate. reserve requirements. the federal funds rate. open market operations. 5. Which of the following is not a goal of monetary policy? stable interest rates low interest rates price stability high employment...
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This note was uploaded on 09/07/2011 for the course FIN 353 taught by Professor Cobus during the Spring '08 term at S.F. State.

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HW_5_Questions_Chapter_8[1] - open market sales and raising...

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