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Keith_Richards [23]
3 years ago
14

If the Fed carries out an open market operation and buys U.S. government​ securities, the federal funds rate​ ________ and the q

uantity of reserves​ ________.
Business
1 answer:
vitfil [10]3 years ago
7 0

Answer:

decreases,  increases

Explanation:

An open market operation where the government buys securities increases the money supply so the Federal funds rates increases. Because of the increase in money supply, the reserves held by banks would increase.

the federal funds rate​ is the interest rate at which banks can borrow or lend excess reserves overnight

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It will cost $4,000 to acquire a small ice cream cart. Cart sales are expected to be $3,200 a year for five years. After the fiv
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5 0
3 years ago
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7 0
3 years ago
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In situation with high risk,credit might create further problems for the borrower.explain.​
rewona [7]

Answer:

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Explanation:

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