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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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