To Target a Rate That Is Higher Than the Current

question 197

Multiple Choice

To target a rate that is higher than the current interest rate, the Fed can:

• A)purchase government securities to reduce reserves.
• B)purchase government securities to increase reserves.
• C)sell government securities to reduce reserves.
• D)sell government securities to increase reserves.

---

Definitions:

Transferring Funds

The act of moving money from one account to another, across individuals, businesses, or banking institutions.

Retake Possession

The act of reclaiming ownership or control of property or assets, often legally after a breach of agreement or law.

Transporter

An individual or entity engaged in the moving of goods or people from one place to another.

Consumer Transactions

The buying and selling of goods or services between businesses and individuals for personal use or consumption.