In a Particular State, Many Commercial Banks Struggle to Lend

question 10

Multiple Choice

In a particular state, many commercial banks struggle to lend money to the borrowers due to lack of money supply. The Fed buys securities from these banks and this creates a smooth flow of money for the banks to conduct their transactions. In this case, which of the following tools has the Fed most likely used to control the money supply?

• A)Open market operations
• B)Discount rate changes
• C)Reserve requirement changes
• D)Interest rate charges

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Definitions:

Seafaring Polynesians

Describes the maritime culture of the Polynesian people, known for their long-distance ocean voyaging and navigation skills.

Primary Resources

Original materials or data that have not been altered or evaluated, used in research or study.

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Refers to plants or animals that were first domesticated within the geographic region of Mexico, such as maize and the turkey.