The Fed Can Attempt to Increase the Federal Funds Rate

question 63

Multiple Choice

The Fed can attempt to increase the federal funds rate by

• A)selling Treasury bills,which increases bank reserves.
• B)buying Treasury bills,which increases bank reserves.
• C)selling Treasury bills,which decreases bank reserves.
• D)buying Treasury bills,which decreases bank reserves.

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Definitions:

Reciprocal Services

Services exchanged between departments within an organization, used in cost accounting to allocate service department costs to producing departments.

Reciprocal Services

Services exchanged between departments within an organization or between companies without direct monetary payment, often valued and accounted for through internal mechanisms.

ABC

An abbreviation for Activity-Based Costing, a method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Direct Method

A cash flow statement preparation method that shows the specific sources of operating cash receipts and payments, contrasting with the indirect method.