By Requiring Banks to Keep More Money in Their Vaults

question 52

Multiple Choice

By requiring banks to keep more money in their vaults, the Federal Reserve Board can effectively pull money out of the economy, thereby slowing ________. Conversely, by loosening reserve requirements, the Federal Reserve Board can pump more money into the economy, which usually leads to ________ interest rates and ________ access to loans.

• A) inflation; lower; easier
• B) inflation; higher; harder
• C) deflation; lower; easier
• D) deflation; higher; harder
• E) inflation; higher; easier

---

Definitions:

Communication

The act of transmitting verbal and nonverbal information and understanding between seller and buyer.

Adaptive Salesperson

An individual who can adjust their sales techniques and approaches based on differing customer needs and changing market environments.

Compatible

Capable of existing or working together in harmony without conflict or adverse effects.

Disagreement Signals

Signs that the prospect does not agree with the presentation or does not think the product is beneficial.