Business, 06.12.2021 19:20, lanettejohnson355
Before the financial crisis of 2008, if the Fed bought government securities in the open market, it:.
a. increased the excess reserves of the banking system, reducing excess reserves for overnight loans in the Federal funds market, thus lowering the Federal funds rate.
b. decreased the excess reserves of the banking system, reducing excess reserves for overnight loans in the Federal funds market, thus increasing the Federal funds rate.
c. decreased the excess reserves of the banking system, reducing excess reserves for overnight loans in the Federal funds market, thus lowering the Federal funds rate.
d. increased the excess reserves of the banking system, raising excess reserves for overnight loans in the Federal funds market, thus lowering the Federal funds rate.
Answers: 2
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Before the financial crisis of 2008, if the Fed bought government securities in the open market, it:...
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