On March 16, 2022, the Federal Reserve released a statement that included, " the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent". How can the Federal Reserve attempt to reach this target? Select all that apply A. The Fed makes an open market purchase of bonds. B. The Federal Reserve instructs Congress to pass legislation setting the interest rate banks can charge one another for short term loans. C. The Federal Reserve opens more branches. The increased competition raises the interest rate. D. The Federal Reserve increases the money supply. E. The Fed lowers reserve requirements F. The Federal Reserve sells bonds in the open market. G. The Fed lowers the discount rate.
On March 16, 2022, the Federal Reserve released a statement that included, " the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent". How can the Federal Reserve attempt to reach this target?
Select all that apply
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A. The Fed makes an open market purchase of bonds. |
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B. The Federal Reserve instructs Congress to pass legislation setting the interest rate banks can charge one another for short term loans. |
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C. The Federal Reserve opens more branches. The increased competition raises the interest rate. |
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D. The Federal Reserve increases the money supply. |
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E. The Fed lowers reserve requirements |
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F. The Federal Reserve sells bonds in the open market. |
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G. The Fed lowers the discount rate. |
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