The Fed announced that it would buy up to $300 billion in Treasury securities over the next six months from big government "primary" securities dealers, such as Barclays Capital, Banc of America Securities, and Citigroup Global Markets. 

What type of transaction is the Fed's purchase of government securities from securities dealers? With no other actions, will these transactions change the quantity of money? If so, will they increase or decrease the quantity of money? Question content area bottom 

Part 1 This transaction is an example of ______. With no other actions, these transactions will ______ the quantity of money.

A. a change in the discount rate; not change

B. a change in the required reserve ratio; decrease

C. an extraordinary crisis measure; increase

D. an extraordinary crisis measure; decrease

E. a change in the discount rate; increase

Answer rating: 100% (QA)

C An extraordinary crisis measure increase The Feds purchase of government sec... View the full answer