An increase in the assets of federal reserve banks

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Reference no: EM131088794

1. An increase in the assets of Federal Reserve banks will

(a) decrease the monetary base.

(b) increase the monetary base.

(d) always decrease another Federal Reserve Bank asset.

2. An increase in excess reserves will cause

(a) the Fed Funds rate to rise.

(b) planned inventory investment to fall.

(d) foreign investors to buy more T-Bills.

3. Consumption spending should increase if

(a) financial wealth decreases.

(b) reserve requirements decrease.

(d) credit availability decreases.

Reference no: EM131088794

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