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Which of the monetary tools available to the Federal Reserve is most often used? Why? Describe how expansionary activities conducted by the Federal Reserve impact
- Which of the monetary tools available to the Federal Reserve is most often used? Why?
- Describe how expansionary activities conducted by the Federal Reserve impact credit availability, the money supply, interest rates, and security prices.
- Suppose the Federal Reserve purchases $10 billion worth of foreign currency in exchange for deposit accounts at the Federal Reserve. Show the changes that result from this transaction on the Fed's balance sheet.
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