The Fed buys U.S. government securities from banks in order to
A. lower the federal funds rate.
B. reduce the governmentʹs budget deficit.
C. decrease banksʹ reserves.
D. None of the above answers are correct.
Answer:A
The Fed buys U.S. government securities from banks in order to
A. lower the federal funds rate. B. reduce the governmentʹs budget deficit. C. decrease banksʹ reserves. D. None of the above answers are correct.