1 Open Market Operations Occur When The Federal Reserve Buys U Treasury Bills Fr

Find answers on: 1)Open-market operations occur when the Federal Reserve:buys U. Treasury bills from the federal government.buys or sells foreign currency.buys or….

1)Open-market operations occur when the Federal Reserve:

a.buys U.S. Treasury bills from the federal government.

b.buys or sells foreign currency.

c.buys or sells existing U.S. Treasury bills.

d.sells U.S. Treasury bills to the federal government.

2)If the Fed decreased the discount rate,

a.the earnings of the Fed would increase.

b.commercial banks probably would reduce their excess reserves and be more willing to extend additional loans.

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