NAIMMCQ Economics There are two ways in which the Fed can provide additional reserves to the banking system: it can ________ government bonds or it can ________ discount loans to commercial banks.

There are two ways in which the Fed can provide additional reserves to the banking system: it can government bonds or it can discount loans to commercial banks.

Economics

There are two ways in which the Fed can provide additional reserves to the banking system: it can government bonds or it can discount loans to commercial banks.

A) sell; extend
B) sell; call in
C) purchase; extend
D) purchase; call in

Answer: C

NAIMMCQ

There are two ways in which the Fed can provide additional reserves to the banking system: it can ________ government bonds or it can ________ discount loans to commercial banks.

There are two ways in which the Fed can provide additional reserves to the banking system: it can ________ government bonds or it can ________ discount loans to commercial banks.

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There are two ways in which the Fed can provide additional reserves to the banking system: it can government bonds or it can discount loans to commercial banks.

There are two ways in which the Fed can provide additional reserves to the banking system: it can government bonds or it can discount loans to commercial banks.