QUESTION 7 According to the reading "Money creation in the modern economy," what activity of banks results in the creation of money? Accepting deposits Making loans Buying securities from the Federal Reserve Paying interest on savings accounts QUESTION 8 How does the Federal Reserve pay for open market purchases of securities? O Printing more currency in circulation O Creating more bank reserves O Increasing the balance of the U.S. Treasury QUESTION 9 In March of this year, the Federal Reserve lowered the target on the Federal Funds rate to 0 to 1/4 percent. To hit the target, the Federal Reserve conducted which of the following actions? Choose one. o Open market sales of securities o Open market purchases of securities Increased the interest on excess reserves (IOER) O Lowered the interest on excess reserves (IOER)