173 Which of the following actions would have the combined effect of raising

173 which of the following actions would have the

This preview shows page 23 - 25 out of 41 pages.

____ 173.Which of the following actions would have the combined effect of raising the money supply and raising the money multiplier?a.The Fed sells bonds and raises the reserve requirement ratio.b.The Fed sells bonds and lowers the reserve requirement ratio.
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c.The Fed buys bonds and raises the reserve requirement ratio.d.The Fed buys bonds and lowers the reserve requirement ratio.____174.The Fed increases the reserve requirement and makes open market purchases. Which of these by itself will increase the money supply?____ 175.When the Fed conducts open market purchases, bank reserves____ 176.If the Fed sells government bonds to the public, bank reserves tend to____ 177.If the Fed makes open market purchases of bonds,a.the money supply increases by more than the amount of bonds purchased.b.the money supply increases by less than the amount of bonds purchased.c.the money supply decreases by more than the amount of bonds purchased.d.the money supply decreases by less than the amount of bonds purchased.____ 178.Reserve requirements are regulations concerning____ 179.In a fractional reserve banking system, an increase in reserve requirements____ 180.In a fractional reserve banking system, a decrease in reserve requirements
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