FINRA Series 7

Category - Series 7

If the Federal Reserve wished to ease credit, which of the following steps would it take?
  1. raise the discount rate
  2. purchase securities in the open market
  3. lower reserve requirements
  4. both B and C
Explanation
Answer: D - both B and C. Buying in the open market injects funds into the economy. Lowering reserve requirements provides banks with more funds for lending.
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