When the Federal Reserve sells government securities on the open market, bank reserves are:
A)increased, which increases the amount of money banks are able to lend, causing a decrease in the federal funds rate.
B)decreased, which reduces the amount of money banks are able to lend, causing a decrease in the federal funds rate.
C)decreased, which reduces the amount of money banks are able to lend, causing an increase in the federal funds rate.
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答案 C
When the Federal Reserve wants to increase the federal funds rate through open market operations, it sells government securities. Open-market sales reduce bank reserves and cause the federal funds rate to increase.
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