Which of the following actions by the Federal Reserve will increase interest rates?
I Purchases of securities as directed by the FOMC
II Sales of securities as directed by the FOMC
III Repurchase agreements with U.S. Government dealers and banks
IV Reverse repurchase agreements with U.S. Government dealers and banks
Answer:
II Sales of securities as directed by the FOMC
IV Reverse repurchase agreements with U.S. Government dealers and banks