A Decrease in the Quantity of Reserves Supplied to Commercial

question 449

Multiple Choice

A decrease in the quantity of reserves supplied to commercial banks could be the result of

• A) the sale of government securities by the Federal Reserve.
• B) an increase in the exchange rate.
• C) a decrease in the governmentʹs budget deficit.
• D) a decision by U.S. households to hold less currency.

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Definitions:

Lead

A heavy metal that is toxic to health, often found in paint, pipes, and various industrial products, exposure to which can cause serious health problems.

Secondary Appraisal

The evaluation of one's ability to cope with the consequences of an encountered stressful event, following an initial assessment of the event's significance.

Stress

A physical, mental, or emotional strain or tension resulting from adverse or demanding circumstances.

Susan Folkman

A psychologist known for her research on stress, coping, and appraisal.