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2 points The Federal Reserve Bank (the Fed) is responsible for monetary policy in the U.S. If their policy is to stimulate or expand the
2 points The Federal Reserve Bank (the Fed) is responsible for monetary policy in the U.S. If their policy is to stimulate or expand the economy, which of the following actions would the Fed take? Check all that apply. Increase the reserve requirements, causing banks to maintain more deposits in the form of cash and have less funds available to loan. Decrease the discount rate, which is the rate charged to financial institutions for short-term loans to banks to meet their reserve requirements. Increase the interest rate paid on excess reserves, creating an incentive for institutions to keep cash on hand as opposed to making risky loans. Purchase U.S. Treasuries such as T-bills, notes, and bonds, as well as purchasing mortgage backed securities. This results in an increase in the money supply
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