The Federal Reserve will engage in a repurchase agreement when it wants to ________ reserves ________ in the banking system.

The Federal Reserve will engage in a repurchase agreement when it wants to ________ reserves ________ in the banking system.

The Federal Reserve will engage in a repurchase agreement when it wants to ________ reserves ________ in the banking system.




A) increase; permanently
B) increase; temporarily
C) decrease; temporarily
D) decrease; permanently



Answer: B