Which of the following is not a tool directly under the control of the FED?

a. open market operations b. setting the discount rate

c. setting the federal funds rate d. adjusting the reserve requirement ratio

Which of the following is not an activity of FED District banks?

a. clear checks b. provide loans to member banks

c. replace old currency d. match lenders & borrowers for commercial loans

Total funds of commercial banks will initially _____ by the dollar amount of the securities _____ by the FED.

a. increase; purchased b. increase; sold

c. decrease; purchased d. remain unchanged; purchased