An Increase in Which of the Following Would Shift the Supply

question 26

Multiple Choice

An increase in which of the following would shift the supply of reserves up?

• A) discount lending
• B) the reserve requirement
• C) open market operations
• D) none of the above

---

Definitions:

Exchange Rate Risk

The possibility that investors may face financial losses as a result of changes in foreign exchange rates.

Fluctuations

Variations or changes in level, degree, or value over time, often seen in financial markets and economic indicators.

Unanticipated Changes

Sudden and unexpected events or changes that can significantly impact the economy, markets, or specific sectors without prior warning.

Home Currency Approach

A method of evaluating foreign investments where the returns are converted and analyzed in the investor's domestic currency.