QUESTION 6 If the banking system has a large amount of excess reserves, which action would the Federal Reserve most likely take to raise the federal funds rate? O Raise discount rate O Raise interest paid on excess reserves O Increase tax rates for individuals and families O Increase reserve requirement ratio O Open market sale of securities
QUESTION 6 If the banking system has a large amount of excess reserves, which action would the Federal Reserve most likely take to raise the federal funds rate? O Raise discount rate O Raise interest paid on excess reserves O Increase tax rates for individuals and families O Increase reserve requirement ratio O Open market sale of securities
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:QUESTION 6
If the banking system has a large amount of excess reserves, which action would the Federal Reserve most likely take to raise the federal funds rate?
Raise discount rate
O Raise interest paid on excess reserves
O Increase tax rates for individuals and families
O Increase reserve requirement ratio
O Open market sale of securities
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