When the Fed is worried that the economy is heading into a recession, it decreases bank reserves.
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Question:
When the Fed is worried that the economy is heading into a recession, it
- decreases bank reserves.
- buys government bonds.
- orders all banks to decrease interest rates.
- recommends that Congress lower the federal funds rate.
- recommends that Congress conduct open market operations.
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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