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A local commercial bank accepts mostly short-term deposits and makes mostly longer-term fixed-rate loans. It will be adversely affected if the Fed ________________. A. Maintains
A local commercial bank accepts mostly short-term deposits and makes mostly longer-term fixed-rate loans. It will be adversely affected if the Fed ________________.
A. | Maintains a stable money supply | |
B. | Raises interest rates incrementally over a relatively short period of time | |
C. | Monetizes the debt | |
D. | Uses repurchase agreements to inject reserves into the banking system |
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