Wendy01

10.  Assume the Fed has decided to lower interest rates in the economy. To carry out this policy, the Fed will most likely instruct the open market trading desk to:

A.    Sell securities

B.     Buy securities

C.     Increase required reserve ratios

  
   
Ans: B; the method Fed used to lower interest rate is expending monetary policy. So here only buy securities in open market is a expending monetary policy.