Need some help with some basic economics questions?

Question

When the Federal Open Market Committee buys government securities,

a. the excess reserves of banks increase.

b. the reserve requirement of banks decreases.

c. the federal funds rate increases.

d. the legal reserves of banks decrease.

e. the reserve deposits of banks decrease.

Restrictive monetary policy is associated with which of the following actions?

a. An increase in the reserve requirement

b. An increase in excess reserves

c. A decrease in the discount rate

d. The purchase of government securities

e. A decrease in the federal funds rate

The aggregate demand curve will shift outward and to the right when the Federal Reserve undertakes which of the following monetary policies?

a. A more lenient supervision of savings and loan institutions b. A reduction in loans to the U.S. Treasury

c. Open market purchases of government securities

d. An increase in the discount rate

e. An increase in the reserve requirement

Answer 1

1 - a

2 - a

3 - c