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21.  An increase in Federal Reserve float increases the monetary base.

 

 

22. Cash drains decrease the monetary base, but not the money supply.

 

23. The Fed exclusively controls the money supply.

 

24.Interest rates and the money supply tend to vary inversely, at least in the short term.

 

25.  Real investment is encouraged by rising interest rates.

 

26.Monetary policy first affects financial markets and institutions, then the real economy.

 

27. Transaction deposits, such as DDAs, expand when the Fed sells securities.

 

28.When the Fed increases the Fed Funds Rate, financial institutions “go to the Window”.

 

29.Monetary policy only works in the short term.

 

30.Monetary policy only works in the long term.

 

 

 

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