Check my answers. What is # 9,10,13?? Which of the following executes open-marke
ID: 1114650 • Letter: C
Question
Check my answers. What is # 9,10,13??
Which of the following executes open-market operations? 6. Board of Governors New York Federal Reserve Bank a. c. The FOMC d. None of the above is correct. 7. Each Federal Reserve District Bank president is appointed the US president the Board of Governors. the voting members of the FOMC. a. with the approval of the Senate d. each bank's board of directors. 8. The Fed's primary tool to change the money supply is a. changing the discount rate. changing the reserve requirement. c.) conducting open market operations d. redeeming Federal Reserve notes. 9. When the Fed conducts open-market purchases, a) it buys Treasury securities, which increases the money supply. b. it buys Treasury securities, which decreases the money supply c. it borrows money from member banks, which increases the money supply. d. it lends money to member banks, which decreases the money supply. 10. If the reserve ratio is 5 percent, $1,000 of additional reserves can create a. $25,000 of new money. $20,000 of new money. . $19,000 of new money. d. $15,000 of new money a puts money into a piggy bank so she can spend it later. What function of money does this illustra b. c. d. store of value medium of exchange unit of account None of the above is correct. 12. Fiat money a. is worthless may be used as a medium of exchange, but is not legal tender. d. performs all the functions of money except providing a unit of account. If the reserve ratio is 10 percent, banks do not hold excess reserves, and people do not hold curren has no intrinsic value. increase by $20 million and the money supply eventually increases by $200 million b. decrease by $20 million and the money supply eventually increases by $200 million. c. increase by $20 million and the money supply eventually decreases by $200 million. d. decrease by $20 million and the money supply eventually decreases by $200 million. 13/ en when the Fed purchases $20 million of government bonds, bank reservesExplanation / Answer
9. The right answer is a. it buys Treasury securities, which increases the money supply
Explanation: Fed conducts open market purchases to increase the money supply. It pays money to the holders of the bonds purchased by the Fed. This infuses more money into the economy and money supply is increased.