​ In Figure 9-1, the loanable funds​ market is in equilibrium at A with the interest rate IR 1 . In conducting monetary policy, the Federal Reserve engages in the buying of US Treasury securities on the open market, which causes

If bankers lose their confidence about the future, they may become very conservative about making loans, creating a credit crunch which

When central banks were first created, their primary function was to

When the Federal Reserve makes a loan at the discount window to a bank, it will __________ the monetary base by __________ bank reserves.

As a country’s financial markets become more highly developed, we can expect monetary policy to be

When the Federal Reserve makes a loan at the discount window to a bank, it will __________ the monetary base by __________ bank reserves.

When the required reserve ratio decreases, the impact of changes in the monetary base on the money supply is

Actual bank reserves are equal to

​The Federal Reserve operates as

​The ease of being able to convert an asset into money is referred to as