Open market purchases by the Federal Reserve System (the Fed)
A. raise the federal funds rate.
B. increase bank reserves.
C. occur when the Fed wants to decrease the quantity of money.
D. All of the above answers are correct.
Answer:D
Open market purchases by the Federal Reserve System (the Fed)
A. raise the federal funds rate. B. increase bank reserves. C. occur when the Fed wants to decrease the quantity of money. D. All of the above answers are correct.