A Borrowed Reserves Target Is ________ Because Increases in Income

question 106

Multiple Choice

A borrowed reserves target is ________ because increases in income ________ interest rates and discount loans,causing the Fed to ________ the monetary base,everything else held constant.

• A)procyclical;increase;increase
• B)countercyclical;increase;increase
• C)procyclical;reduce;reduce
• D)countercyclical;reduce;reduce

---

Definitions:

Declare Dividends

The action by a company's board of directors to distribute profits to shareholders.

Par Value

The face value of a bond or stock as set forth in its certificate.

Two-For-One Stock Split

An action by a company to increase its number of shares by dividing each existing share into two, often to make the stock more affordable.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership interest in a corporation.