What is one way the Federal Reserve can reduce the amount of money available in the economy?A.Buying treasury securitiesB.Lowering the interest on reservesC.Raising the discount rateD.Selling treasury securities

Which tool of monetary policy allows the Federal Reserve to decrease the money supply?A.Purchasing treasury securities on the open marketB.Decreasing the discount rate on short-term loansC.Increasing the reserve requirement on banksD.Lowering interest on reserves paid to banks

The Federal Reserve increases the discount rate in order to:A.make more treasury securities available for sale.B.encourage banks to increase their prime rates.C.make banks more likely to lend money to customers.D.increase the overall money supply in the economy.

Reducing the discount rate can influence the economy by:A.preventing investors from selling their treasury securities.B.giving banks an incentive to hold on to large reserves.C.encouraging businesses to borrow money from banks.D.greatly increasing the inflation rate across the economy.

A central bank buys treasury securities at market rates in order to:A.decrease the amount of money banks hold in reserve.B.increase the discount rate for private banks.C.decrease the unemployment rate by hiring workers.D.increase the money supply in the economy.

Which of the following actions of a central bank would decrease the money supply in the economy?A.Increase the target interest rateB.Decrease the minimum reserve requirement.C.Reduce the interest rate paid on bank reserve.D.Buy bonds through open market operations.