If the Fed Wants to Temporarily Inject Reserves into the Banking

question 65

Multiple Choice

If the Fed wants to temporarily inject reserves into the banking system,it will engage in

• A)a repurchase agreement.
• B)a matched sale-purchase transaction.
• C)a reverse repurchase agreement.
• D)an open market sale.

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Definitions:

Liable

Responsible by law; legally obligated to compensate for harm or damage caused by one’s actions or negligence.

Increases Amount

Refers to the act of raising the quantity or value of something.

Liable

Legally responsible or obligated.

Co-signs

Agrees to be equally responsible for the repayment of a loan or obligation, typically to help another person obtain credit.