When reserves are added to the banking system, depository institutions may expand their lending but are not forced to do so.
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Q20: Fannie Mae was created to support the
Q21: Discount policy is still a major instrument
Q22: The money supply can be contracted by
Q23: The three primary means that the Fed
Q24: The Fed lending rate to depository institutions
Q26: If excess reserves are near zero, then
Q27: By exercising its influence on the monetary
Q28: Open market operations are similar to discount
Q29: The ability to change reserve requirement is
Q30: The primary responsibility of the Fed is
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