- CFA Exams
- CFA Level I Exam
- Study Session 5. Economics (2)
- Reading 16. Monetary and Fiscal Policy
- Subject 4. The Objectives of Monetary Policy
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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