choose two of the ways that the federal reserve fights recessions.\na discount lending\nb open market…

choose two of the ways that the federal reserve fights recessions.\na discount lending\nb open market purchases\nc raises interest rates\nd sells government securities\ne raises the reserve requirement for banks

choose two of the ways that the federal reserve fights recessions.\na discount lending\nb open market purchases\nc raises interest rates\nd sells government securities\ne raises the reserve requirement for banks

Answer

Brief Explanations:

To fight recessions, the Federal Reserve uses expansionary monetary policy. Expansionary tools include discount lending (increasing access to funds for banks, A) and open market purchases (buying securities to inject money, B). Raising interest rates (C), selling securities (D), and raising reserve requirements (E) are contractionary, used to fight inflation, not recessions.

Answer:

A. discount lending, B. open market purchases