$16)$ An indication to the Open Market Account Manager that commercial banks are experiencing a liquidity surplus would be a

A$)$ falling federal funds rate.

B$)$ rising federal funds rate.

C$)$ falling discount rate.

D$)$ rising discount rate.

$17)$ An indication to the Open Market Account Manager that commercial banks are experiencing a liquidity shortage would be a

A$)$ falling federal funds rate.

B$)$ rising federal funds rate.

C$)$ falling discount rate.

D$)$ rising discount rate.

$18)$ An outright purchase of government securities by the Fed

A$)$ permanently increases bank reserves.

B$)$ temporarily increase bank reserves.

C$)$ permanently reduces bank reserves.

D$)$ temporarily reduces bank reserves.

$19)$ An outright sale of government securities by the Fed

A$)$ permanently increases bank reserves.

B$)$ temporarily increases bank reserves.

C$)$ permanently reduces bank reserves.

D$)$ temporarily reduces bank reserves.

$20)$ A repurchase agreement of government securities by the Fed

A$)$ permanently increases bank reserves.

B$)$ temporarily increases bank reserves.

C$)$ permanently reduces bank reserves.

D$)$ temporarily reduces bank reserves.

$21)$ A reverse repurchase agreement of government securities by the Fed

A$)$ permanently increases bank reserves.

B$)$ temporarily increases bank reserves.

C$)$ permanently reduces bank reserves.

D$)$ temporarily reduces bank reserves.

$22)$ A matched sale$-$purchase agreement of government securities by the Fed

A$)$ permanently increases bank reserves.

B$)$ temporarily increases bank reserves.

C$)$ permanently reduces bank reserves.

D$)$ temporarily reduces bank reserves.