If the Fed's Actions Cause a Bank's Reserves to Increase

question 58

Multiple Choice

If the Fed's actions cause a bank's reserves to increase, we know the bank will have an incentive to convert the new reserves into loans and bonds because

• A)of government regulation.
• B)reserves are taxed by the federal government.
• C)of moral suasion.
• D)reserves don't earn interest.
• E)the Fed will take the reserves back if they are not used.

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Definitions:

Cooing

The early vocalization stage in infants, characterized by the production of soft, murmuring sounds, typically starting around 6 to 8 weeks of age.

Babbling

An early stage in language development where infants produce sounds, combining vowels and consonants, that resemble speech.

Echolalia

The automatic and involuntary repetition of words or phrases just spoken by others, often a symptom of autism spectrum disorder or other conditions.

Broca's Area

A region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.