Multiple...CHOICE!!?

1 – The buying and selling of government securities to alter the supply of money are:
A – a painful necessity.
B – open market operations.
C – equalizing the required reserve ratio.
D – tight money policies.


2 – The Federal Reserve could encourage banks to lend out more of their reserves by:
A – reducing the discount rate.
B – raising the required amount of reserve.
C – increasing the prime rate.
D – reducing the money supply.


3 – Banks sometimes hold cash reserve to:
A – be sure and meet customers’ demands.
B – protect against high prices.
C – make check clearing easier.
D – keep from lending too much money.

Thank you so MUCH!!

Answer:
1. B
2. A
3. A
1.B
1-b
2-c
3-b

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