Reserve Requirements Are Changed

question 35

Multiple Choice

Reserve requirements are changed

• A)more frequently than the discount rate is changed, but less frequently than open market operations are conducted.
• B)more frequently than the discount rate is changed and more frequently than open market operations are conducted.
• C)more frequently than open market operations are conducted, but less frequently than the discount rate is changed.
• D)less frequently than open market operations are conducted and less frequently than the discount rate is changed.

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Definitions:

Enters into Contract

The act of agreeing to the terms and conditions of a contract, thereby creating a legally binding agreement between two or more parties.

Clear Instructions

Explicit and unambiguous directions provided to carry out a task or procedure efficiently and effectively.

Agency by Operation of Law

A legal principle that creates an agency relationship under certain conditions, despite the lack of any agreement between the parties, for reasons of fairness or necessity.

Settlement Agreement

A legally binding contract that resolves a dispute between parties outside of court, usually involving some form of compensation.