When the Fed Increases the Reserve Requirement, Banks

question 36

Multiple Choice

When the Fed increases the reserve requirement, banks

• A) must increase the dollar volume of loans they make to customers.
• B) must pay more to borrow from the Fed.
• C) have fewer funds available for lending.
• D) will find their balance sheets temporarily out of balance.

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Definitions:

Federal Election Commission

An independent regulatory agency of the United States charged with enforcing campaign finance law in federal elections to ensure the integrity of the democratic process.

Slate of Electors

A group of individuals chosen in each state who are responsible for formally casting votes for the president and vice president in a U.S. presidential election.

Plurality of Votes

A voting outcome in which the candidate or proposition with the most votes wins, but does not necessarily receive an absolute majority of all votes.

Majority of Votes

More than half of the votes cast in an election or other decision-making process.