Suppose the federal reserve wants to increase the money supply by increasing the lending potential of commercial banks. assume the current reserve requirement for commercial banks is 5 percent. now suppose the fed wants the lending potential to increase by $320 billion, and it plans to use open-market operations to accomplish this goal.
a. if sales or purchases of government securities are the only instrument used in the open-market operations, the fed will need to (click to select)g government securities in the total amount ofsbillion
b. the fed may also opt to use some amount of (click to select) to effectively (click to select)commercial banks rather than permanently transfer ownership of the securities in order to obtain its goal.