If the Federal Funds Rate Stays in the Corridor and the Fed

question 50

Multiple Choice

If the federal funds rate stays in the corridor and the Fed wants to raise the federal funds rate, it needs to

• A) buy government securities in order to increase the quantity of reserves.
• B) sell government securities in order to decrease the quantity of reserves.
• C) buy government securities in order to decrease the quantity of reserves.
• D) sell government securities in order to increase the quantity of reserves.

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Definitions:

Prostate Surgery

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Impotent

Often used in reference to erectile dysfunction; the inability to achieve or maintain an adequate erection for satisfactory sexual activity.

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The satisfaction or pleasure achieved through sexual activities or thoughts.

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Temporary feelings of inadequacy or low confidence triggered by specific situations or events.