Float artificially inflates the level of bank reserves

Assignment Help Financial Management

Reference no: EM131874573

1. Over the past two decades the relationship between money supply growth and the performance of the U.S. economy has strengthened considerably.

True

False

2. The President of each of the twelve Reserve Banks is selected by that bank's board of directors, subject to the approval of the Board of Governors. His/her term is renewable.

True

False

3. Float artificially inflates the level of bank reserves and may necessitate defensive open market sales by the Fed.

True

False

Reference no: EM131874573

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