Exam 15: Tools of Monetary Policy

Everything else held constant,in the market for reserves,decreases in the interest rate paid on excess reserves affect the federal funds rate

When the European System of Central Banks uses main refinancing operations,it is similar to the Federal Reserve using

The interest rate charged on overnight loans of reserves between banks is the

The Federal Reserve has had the authority to vary reserve requirements since the

The most important advantage of discount policy is that the Fed can use it to

Everything else held constant,in the market for reserves,when the federal funds rate equals the interest rate paid on excess reserves,raising the interest rate paid on excess reserves

If Treasury deposits at the Fed are predicted to ________,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

Everything else held constant,in the market for reserves,increases in the discount rate affect the federal funds rate

When the Federal Reserve engages in a repurchase agreement to offset a withdrawal of Treasury funds from the Federal Reserve,the open market operation is said to be

The actual execution of open market operations is done at

If Treasury deposits at the Fed are predicted to increase,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

When bad storms slow the check-clearing process,float tends to ________ causing the Fed to initiate ________ open market ________.

Suppose on any given day there is an excess demand of reserves in the federal funds market.If the Federal Reserve wishes to keep the federal funds rate at its current level,then the appropriate action for the Federal Reserve to take is a ________ open market ________,everything else held constant.

The policy tool of changing reserve requirements is

The Federal Reserve will engage in a matched sale-purchase transaction when it wants to ________ reserves ________ in the banking system.

The European System of Central Banks signals the stance of its monetary policy by setting a target for the

A decrease in ________ increases the money supply since it causes the ________ to rise.

Since 1980,________ are subject to reserve requirements.

In the market for reserves,if the federal funds rate is between the discount rate and the interest rate paid on excess reserves,an increase in the reserve requirement ________ the ________ for reserves and causes the federal funds interest rate to rise,everything else held constant.

In the market for reserves,when the federal funds interest rate is below the discount rate,the supply curve of reserves is