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1 6 ) An indication to the Open Market Account Manager that commercial banks are experiencing a liquidity surplus would be a A ) falling

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.

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