11.

Which of the following is the most commonly employed monetary tool of all Federal Reserve Board actions and is performed almost daily in an effort to control the money supply?

Reserve requirements

Open market operations

Credit controls

Credit unions

Discount rates

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12.

If the Federal Reserve Board wants to increase the money supply and the economic activity, it is likely to:

buy government securities usually from large banks.

raise discount rates for banking institutions.

increase reserve requirements for banking institutions.

sell U.S. Treasury bills.

restrict credit controls.

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13.

When the Federal Reserve Board sells government securities, _____.

it affects the overall level of the competition between different banks

the money supply in the economy decreases

economic activity increases

economic activity remains unaffected

it is performing a regulatory function