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Which of the following statements is not true about the role of the Federal Open Market Committee (FOMC)? Possible Answers A When the FOMC increases
Which of the following statements is not true about the role of the Federal Open Market Committee (FOMC)? Possible Answers A When the FOMC increases the target level of the federal funds rate, it makes it more expensive for banks to run a shortfall in their reserve accounts. B When the FOMC increases the target level of the federal funds rate, banks have an incentive to keep more money on deposit at their reserve bank. c When the FOMC increases the target level of the federal funds rate, banks have an incentive to underwrite more loans which results in increasing the level of interest rates charged on loans. D When the FOMC decreases the target level of the federal funds rate, it makes it cheaper for banks to run a shortfall in their reserve accounts. E When the FOMC decreases the target level of the federal funds rate, it provides the banks an incentive to underwrite more loans which results in decreasing the level of interest rates charged on loans
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