The Fed wants to increase the quantity of funds available through the Term Auction Facility. The Fed sets the
A)price of the loan, and money supply increases.
B)quantity of borrowing, and money supply increases.
C)price of the loan, and money supply decreases.
D)quantity of borrowing, and money supply decreases.

Question

​The Fed wants to increase the quantity of funds available through the Term Auction Facility. The Fed sets the
A)​price of the loan, and money supply increases.
B)​quantity of borrowing, and money supply increases.
C)​price of the loan, and money supply decreases.
D)​quantity of borrowing, and money supply decreases.

Quizplus · Accepted Answer

The Fed sets the quantity of borrowing in the Term Auction Facility, which increases the money supply by making more funds available to banks.

​The Fed Wants to Increase the Quantity of Funds Available

The Fed Wants to Increase the Quantity of Funds Available