If the Account Manager Finds That the Current Level of Bank

question 24

Multiple Choice

If the account manager finds that the current level of bank reserves is greater than the desired level indicated in the most recent directive from the FOMC, he will

• A)order banks to reduce their reserves.
• B)order banks to raise their interest rates in an attempt to get them to loan out more of their reserves.
• C)conduct an open market purchase.
• D)conduct an open market sale.

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Definitions:

Moral Development

The process through which individuals acquire and understand moral concepts, including how to differentiate right from wrong and develop ethical principles over time.

Morality of Reducing Injustice

Ethical considerations involved in actions and policies aimed at decreasing unfairness and inequality in society.

Morality of Associations

The ethical considerations involved in one's affiliations or connections with groups or individuals.

Difference Principle

A concept in political philosophy that suggests social and economic inequalities should be arranged so that they are to the greatest benefit of the least advantaged members of society.