CFA Practice Question

CFA Practice Question

Fearing a recession approaching, the FED wishes to stimulate economic growth. Which of the following is least likely to happen?
A. The purchase of treasuries through open market operations.
B. Reducing the FED discount rate.
C. Increasing the minimum amount that banks can lend.
Explanation: The Fed does not impose a minimum for the amount that banks can lend, only a maximum amount they can lend given their reserves (through the reserve ratio)

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