Suppose,at a Given Federal Funds Rate,there Is an Excess Demand

question 74

Multiple Choice

Suppose,at a given federal funds rate,there is an excess demand for reserves in the federal funds market. If the Fed wants the federal funds rate to stay at that level,then it should undertake an open market ________ of bonds,everything else held constant. If the Fed does nothing,however,the federal funds rate will ________.

• A)sale;increase
• B)purchase;increase
• C)sale;decrease
• D)purchase;decrease

---

Definitions:

Ping Command

A network utility used to test the reachability of a host on an Internet Protocol (IP) network and to measure the round-trip time for messages sent from the originating host to a destination computer.

Proxy Server

A server that acts as an intermediary for requests from clients seeking resources from other servers, often used for anonymity or to bypass content restrictions.

Internet Options

A set of configurations available in web browsers or operating systems that allow users to modify settings related to internet connectivity, security, privacy, and content.

Rooting

A term used to describe accessing or having an operating system on a mobile device in such a way that the user has an increased level of privilege on the device. It is often associated with attaining privileged control on Android devices. Compare with jailbreaking iOS-based devices such as iPhones.