In the Market for Reserves,a Lower Interest Rate Paid on Excess

question 37

Multiple Choice

In the market for reserves,a lower interest rate paid on excess reserves

• A)decreases the supply of reserves.
• B)increases the supply of reserves.
• C)decreases the effective floor for the federal funds rate.
• D)increases the effective floor for the federal funds rate.

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Definitions:

Automatic Processing

Cognitive activities that require little conscious thought or effort, often occurring without our awareness and capable of being performed simultaneously with other tasks.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing, crucial for reasoning and the guidance of decision-making and behavior.

Atkinson And Shiffrin

Two cognitive psychologists who, in 1968, proposed the multi-store model of memory that outlines three distinct stages: sensory memory, short-term memory, and long-term memory.

Rehearse Information

The act of practicing or mentally reviewing information repeatedly to enhance memory retention.