The Fed uses three policy tools to manipulate the money supply: open market operations, which affect the _______; changes in borrowed reserves, which affect the _______; and changes in reserve requirements, which affect the _______.

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

The primary indicator of the Fed’s stance on monetary policy is

The quantity of reserves demanded equals

Everything else held constant, when the federal funds rate is _______ the interest rate paid on reserves, the quantity of reserves demanded rises when the federal funds rate _______.

The opportunity cost of holding excess reserves is the federal funds rate _______.

In the market for reserves, when the federal funds rate is above the interest rate paid on excess reserves, the demand curve for reserves is _______.

When the federal funds rate equals the interest rate paid on excess reserves _______.

Which of the following is NOT an argument for the Federal Reserve paying interest on excess reserve holdings?

The quantity of reserves supplied equals

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

When the federal funds rate equals the discount rate

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, then an open market _______ the supply of reserves, raising the federal funds interest rate, everything else held constant.

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase _______ the _______ of reserves which causes the federal funds rate to fall, everything else held constant.

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.

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ______ the supply of reserves and causes the federal funds interest rate to ______, everything else held constant.

Suppose on any given day the prevailing equilibrium federal funds rate is above the Federal Reserve's federal funds target rate. If the Federal Reserve wishes for the federal funds rate to be at their target level, then the appropriate action for the Federal Reserve to take is a ______ open market ______, everything else held constant.

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ______ the supply of reserves causing the federal funds rate to ______, everything else held constant.

Suppose on any given day there is an excess supply 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.

Suppose on any given day the prevailing equilibrium federal funds rate is below the Federal Reserve's federal funds target rate. If the Federal Reserve wishes for the federal funds rate to be at their target level, then the appropriate action for the Federal Reserve to take is a ______ open market ______, everything else held constant.

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ______ the ______ of reserves, causing the federal funds rate to increase, everything else held constant.

In the market for reserves, a lower discount rate

In the market for reserves, a lower interest rate paid on excess reserves

Everything else held constant, in the market for reserves, when the federal funds rate is 3%, lowering the discount rate from 5% to 4%

Everything else held constant, in the market for reserves, when the federal funds rate is 3%, increasing the interest rate paid on excess reserves from 1% to 2%

Everything else held constant, in the market for reserves, when the federal funds rate is 5%, lowering the discount rate from 5% to 4%

Everything else held constant, in the market for reserves, when the federal funds rate is 1%, increasing the interest rate paid on excess reserves from 1% to 2%

Everything else held constant, in the market for reserves, when the federal funds rate is 3%, raising the discount rate from 5% to 6%

Everything else held constant, in the market for reserves, when the federal funds rate is 3%, lowering the interest rate paid on excess reserves rate from 2% to 1%

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

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

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

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

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

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

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

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

The Federal Reserve usually keeps the discount rate

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

Everything else held constant, the vertical section of the supply curve of reserves is lengthened when the

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 demand for reserves, _______ the federal funds rate, everything else held constant.

In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a _______ in the reserve requirement _______ the demand for reserves, raising the federal funds interest rate, everything else held constant.

In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a _______ in the reserve requirement increases the demand for reserves, _______ the federal funds interest rate, everything else held constant.

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 demand of reserves and causes the federal funds interest rate to ________, everything else held constant.

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, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a _______ in the reserve requirement ________ the demand for reserves, lowering the federal funds interest rate, everything else held constant.

In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement _______ the _______ curve of reserves and causes the federal funds interest rate to fall, everything else held constant.

In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement _______ the demand of reserves, _______ the federal funds rate, everything else held constant.

Suppose, at a given federal funds rate, there is an excess demand for reserves in the federal funds market. If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market _______ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will _______.

Suppose, at a given federal funds rate, there is an excess supply of reserves in the federal funds market. If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market _______ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will _______.

______ are the most important monetary policy tool because they are the primary determinant of changes in the ______, the main source of fluctuations in the money supply.

Open market purchases raise the ______ thereby raising the ______.

Open market purchases ______ reserves and the monetary base thereby ______ the money supply.

Open market sales shrink ______ thereby lowering ______.

Open market sales ______ reserves and the monetary base thereby ______ the money supply.

The two types of open market operations are

There are two types of open market operations: ______ open market operations are intended to change the level of reserves and the monetary base, and ______ open market operations are intended to offset movements in other factors that affect the monetary base.

Open market operations intended to offset movements in noncontrollable factors (such as float) that affect reserves and the monetary base are called

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 Federal Open Market Committee makes the Fed’s decisions on the purchase or sale of government securities, but these purchases or sales are executed by the Federal Reserve Bank of

The actual execution of open market operations is done at

If float is predicted to decrease because of unseasonably good weather, the manager of the trading desk at the Federal Reserve Bank of New York will likely conduct a ______ open market ______ of securities.

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

When good weather speeds the check-clearing process, float tends to ______, causing the Fed to initiate defensive open market ______.

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

When good weather speeds the check-clearing process, float tends to ______ causing the Fed to initiate ______ open market ______.

If float is predicted to increase because of bad weather, the manager of the trading desk at the New York Fed bank will likely conduct ______ open market operations to ______ reserves.

If float is predicted to decrease because of good weather, the manager of the trading desk at the New York Fed bank will likely conduct ______ open market operations to ______ reserves.

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.

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.

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

If the Fed expects currency holdings to rise, it conducts open market ______ to offset the expected ______ in reserves.

If the Fed expects currency holdings to fall, it conducts open market ______ to offset the expected ______ in reserves.

If the banking system has a large amount of reserves, many banks will have excess reserves to lend and the federal funds rate will probably ______; if the level of reserves is low, few banks will have excess reserves to lend and the federal funds rate will probably ______.

The Federal Reserve will engage in a repurchase agreement when it wants to ______ reserves ______ in the banking system.

If the Fed wants to temporarily inject reserves into the banking system, it will engage in

The Fed can offset the effects of an increase in float by engaging in

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

Discount policy affects the money supply by affecting the volume of ______ and the ______.

The discount rate is

The most common type of discount lending that the Fed extends to banks is called

The most common type of discount lending, ______ credit loans, are intended to help healthy banks with short-term liquidity problems that often result from temporary deposit outflows.

When the Fed acts as a lender of last resort, the type of lending it provides is

The Fed’s discount lending is of three types: ______ is the most common category; ______ is given to a limited number of banks in vacation and agricultural areas; ______ is given to banks that have experienced severe liquidity problems.

The discount rate is ______ kept ______ the federal funds rate.

The discount rate refers to the interest rate on

The interest rate on secondary credit is set ______ basis points ______ the primary credit rate.

The interest rate for primary credit is usually set ______ basis points ______ the federal funds rate. In March 2008, this gap was changed to ______ basis points.

The interest rate on seasonal credit equals

The Fed is considering eliminating

At its inception, the Federal Reserve was intended to be

Much of the credit for prevention of a financial market meltdown after "Black Monday" (October 19, 1987) must be given to the Federal Reserve System and its chairman

A financial panic was averted in October 1987 following "Black Monday" when the Fed announced that

The facility that was created in December of 2007 that banks can use to borrow from the Fed that has less of a stigma for banks compared to borrowing from the discount window is the

Which of the following special lending facilities set up by the Federal Reserve is reserve neutral?

The Fed’s lender-of-last-resort function

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

An increase in _______ reduces the money supply since it causes the _______ to fall.

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

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

Since 1980, _______ are subject to reserve requirements.

Funds held in _______ are subject to reserve requirements.

The policy tool of changing reserve requirements is

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

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

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

The equivalent to the Federal Reserve's discount rate in the European System of Central Banks is the

The Federal Reserve ______ pay interest on reserves held on deposit. The European System of Central Banks ______ pay interest on reserves held on deposit.

Since the European Central Bank ______ interest on reserves, banks have a ______ cost of complying with reserve requirements when compared to banks complying with the reserve requirements of the Federal Reserve.