Discussion:
1.If the Fed purchases $1 million in securities from the nonbank public, the monetary base will rise by $1 million
2. If the Fed buys securities worth $10 million, then
3. The percentage of deposits that banks must hold as reserves is called the
4. If the Fed purchases $50,000 in T-bills from a bank, by how much will the bank's excess reserves increase
5. Most of the increase in the monetary base between 2007 and 2012 was due to increases in
6. The aggregate M1 consists of
7. Open market operations generally involve
8. Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic
9. The Fed has the greatest control over which of the following
10. The Fed's portfolio of securities consists principally of