If the Federal Reserve System decides to decrease the value of the reserve ratio, then excess reserves for the banking system will ___ and ____ loans can be made to customers.

In today’s economy, if the government wants to control the amount of money circulating in the economy, then it must:

Suppose a private bank needs to acquire short-term funds. The private bank can:

If the Federal Reserve System decides to increase the value of the reserve ratio, then excess reserves for the banking system will ___ and ____ loans can be made to customers.

Suppose the Federal Reserve System decides to sell $40 billion of US Treasury bonds to the general public. If the reserve requirement is currently 25%, then the nation’s money supply will eventually ___ as a result of the FED’s actions.

When the Federal Reserve System increases the value of the discount rate:

The reserve ratio indicates the percentage of a bank’s total transaction deposits that can be used for loan-making activities.

When the Federal Reserve System decreases the value of the discount rate:

All of these functions are performed by the Federal Reserve District Banks EXCEPT:

The rate of interest charged by private banks when they lend reserve dollars to other private banks is called the: