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The Federal Reserve can influence the federal funds interest rate by buying securities, which ________ reserves, thereby ________ the federal funds rate A) adds; raising B) removes; lowering C) adds; lowering
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The Federal Reserve can influence the federal funds interest rate by buying securities, which ________ reserves, thereby ________ the federal funds rate

A) adds; raising
B) removes; lowering
C) adds; lowering
D) removes; raising

User Stick It To THE MAN
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1 Answer

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Answer: C) adds; lowering

Step-by-step explanation:

Federal Reserve has the ability to influence the federal funds interest rate.

When the Federal reserves buys the securities (financial instruments such as marketable securities or non-marketable securities) they add reserves, which in return lowers the federal funds interest rate.

User SternK
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