6. Total funds of commercial banks will initially_by the dollar amount of the securitiesby the FED a. increase, purchased c. decrease, purchased 7. A loose money policy tends to economic growth andthe inflation rate. a. stimulate; place downward pressure on b. stimulate; place upward pressure on c. dampen; place upward pressure on d dampen; place downward pressure on 8. Subordinate notes and debentures are used as a secondary capital; pension fundsb. primary capital; insurance companies c. secondary capital; banks 9. Which of the following best describes the relationship between the FED and the b. increase; sold d. remain unchanged; purchased rm iG su at d. depository sources, mutual funds. to In Administration? a. The FED must receive approval by the Administration before conducting monetary poli The FED must implement a monetary policy specifically to support the Administration's policy The Administration must receive approval from the FED before implementing fiscal policy None of these is an accurate description. b. c. d