In the Market for Reserves,if the Federal Funds Rate Is

question 103

Multiple Choice

In the market for reserves,if the federal funds rate is above the interest rate paid on excess reserves,an open market purchase ________ the ________ of reserves which causes the federal funds rate to fall,everything else held constant.

• A)increases;supply
• B)increases;demand
• C)decreases;supply
• D)decreases;demand

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Definitions:

Independent

In statistics, refers to variables or samples that are not influenced by each other; in general, freedom from outside control or support.

Dependent

In statistics, it refers to a variable which is assumed to be influenced by one or more independent variables.

Random Phenomenon

A process or event that occurs in a manner that the outcome is unpredictable and, in some cases, follows a probability distribution.

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A lottery game available in Maryland, part of the multi-state Powerball lottery in the United States.