- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 4. Monetary Policy
- Subject 2. Monetary Policy Tools and Monetary Transmission
CFA Practice Question
To decrease the federal funds rate, the Fed can use open market operations to ______
A. decrease the quantity of reserves demanded.
B. increase the quantity of reserves supplied.
C. decrease the quantity of reserves supplied.
Explanation: The Fed cannot change the demand curve for reserves.
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