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Sublight2097 Sublight2097
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Posts: 4132
10 years ago
The Federal Reserve uses open market operations rather than changes in legal reserve requirements as its principal tool of monetary management because changes in legal reserve requirements
A) can be easily evaded by commercial banks.
B) must secure Congressional approval.
C) would be excessively powerful and disruptive.
D) would be less profitable for the Federal Reserve Banks.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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VincenzoDVincenzoD
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9 years ago
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Sublight2097 Author
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9 years ago
I've noticed they use a lot of trickery with their questions. Thank you for your input.
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