Question : 31) Everything else held constant, in the market for reserves, : 1373788

 

31) Everything else held constant, in the market for reserves, when the federal funds rate equals the discount rate, lowering the discount rate

A) increases the federal funds rate.

B) lowers the federal funds rate.

C) has no effect on the federal funds rate.

D) has an indeterminate effect of the federal funds rate.

 

32) 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

A) increases the federal funds rate.

B) lowers the federal funds rate.

C) has no effect on the federal funds rate.

D) has an indeterminate effect of the federal funds rate.

 

33) Everything else held constant, in the market for reserves, when the demand for federal funds intersects the reserve supply curve along the horizontal section, increasing the discount rate

A) increases the federal funds rate.

B) lowers the federal funds rate.

C) has no effect on the federal funds rate.

D) has an indeterminate effect on the federal funds rate.

 

34) Everything else held constant, in the market for reserves, when the supply for federal funds intersects the reserve demand curve along the horizontal section, lowering the interest rate paid on excess reserves

A) increases the federal funds rate.

B) lowers the federal funds rate.

C) has no effect on the federal funds rate.

D) has an indeterminate effect of the federal funds rate.

35) Everything else held constant, in the market for reserves, when the demand for federal funds intersects the reserve supply curve on the vertical section, increasing the discount rate

A) increases the federal funds rate.

B) lowers the federal funds rate.

C) has no effect on the federal funds rate.

D) has an indeterminate effect on the federal funds rate.

 

36) Everything else held constant, in the market for reserves, when the supply for federal funds intersects the reserve demand curve on the downward sloping section, decreasing the interest rate paid on excess reserves

A) increases the federal funds rate.

B) lowers the federal funds rate.

C) has no effect on the federal funds rate.

D) has an indeterminate effect on the federal funds rate.

 

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

A) when the funds rate is below the discount rate.

B) when the funds rate equals the discount rate.

C) when the demand for federal funds intersects the vertical section of the reserve supply curve.

D) when the demand for federal funds equals zero.

 

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

A) when the funds rate is below the interest rate paid on excess reserves.

B) when the funds rate equals the interest rate paid on excess reserves.

C) when the funds rate is below the discount rate.

D) when the funds rate equals the discount rate.

 

39) The Federal Reserve usually keeps the discount rate

A) above the target federal funds rate.

B) equal to the target federal funds rate.

C) below the target federal funds rate.

D) equal to zero.

40) Everything else held constant, the vertical section of the supply curve of reserves is shortened when the

A) discount rate increases.

B) discount rate decreases.

C) federal funds rate rises.

D) federal funds rate falls.

 

 

 

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