If fed reserve targets the current iff where iff< id and there is unexpected inc
ID: 2592617 • Letter: I
Question
If fed reserve targets the current iff where iff< id and there is unexpected increase in demand for reserves then to defend its target the federal reserve can? - raise required reserve ratio - lower discount rate Sell securities Raise discount rateWhich answer? If fed reserve targets the current iff where iff< id and there is unexpected increase in demand for reserves then to defend its target the federal reserve can? - raise required reserve ratio - lower discount rate Sell securities Raise discount rate
Which answer? - raise required reserve ratio - lower discount rate Sell securities Raise discount rate
Which answer?
Explanation / Answer
if there is an unexpected increase in demand for reserves and federal reserve can defend its target by raising the discount rates
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