If the Fed Carries Out an Open Market Operation and Sells

question 64

Multiple Choice

If the Fed carries out an open market operation and sells U.S. government securities, the federal funds rate _{--------------------}and the quantity of reserves_{--------------------} .

• A)falls; increases
• B)rises; decreases
• C)rises; does not change
• D)rises; increases
• E)falls; decreases

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A substantial amount of understanding or information a person has acquired through study or experience regarding a specific subject.

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The production of novel and useful ideas.

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A feeling of intense dislike or aversion towards something.