When the Central Bank in an Economy Raises the Refinancing

question 53

True/False

When the central bank in an economy raises the refinancing rate it encourages commercial banks to reduce their lending, thereby tending to reduce the money supply.

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Definitions:

Enslaved Americans

People forced into servitude without freedom, predominantly Africans and African Americans, in the United States prior to the abolition of slavery.

Freedom

The condition or right of being able or allowed to do, say, think, or pursue life activities without undue restraint or oppression.

Disputed Election of 1876

A controversial U.S. presidential election marked by widespread electoral fraud and disputes, ultimately resolved through the Compromise of 1877.

Compromise of 1877

An informal, unwritten deal that settled the intensely disputed 1876 U.S. presidential election, resulting in the withdrawal of federal troops from the South and marking the end of the Reconstruction era.