Question: Please answer all the questions. I will score your answer very good. Thank you! 1. The federal funds rate is the rate at which the

Please answer all the questions. I will score your answer very good. Thank you!

Please answer all the questions. I will score your answer very good.

1. The federal funds rate is the rate at which the Fed lends moncy directly to member banks. a. True b. False 2. Inflation causes investors to lose purchasing power. a. True b. False 3. If the Fed attempts to reduce inflation, it would likely increase money supply growth. a. True b. False 4. If the Fed attempts to reduce inflation, it would likely increase interest rates. a. True b. False 5. T-bills do not offer interest payments but are sold at a discount from par value. a. True b. False 6. The FOMC is directly responsible for conducting monetary policy. a. True b. False 7. Increasing the US money supply will enable US corporations to sell goods to foreign countries at cheaper prices a. True b. False 8. The Federal Reserve sets member banks required reserve ratios a. True b. False 9. In macroeconomic terms, increasing interest rates encourage businesses and households to borrow more a. True b. False 10. The primary credit rate is set above the federal funds rate a. True b. False

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