If the Monetary Authorities Want to Reduce Chartered Bank Lending

question 50

Multiple Choice

If the monetary authorities want to reduce chartered bank lending they should:

• A)take actions to reduce chartered bank reserves.
• B)take actions to increase chartered bank reserves.
• C)ask the chartered banks to lower the desired reserve ratio.
• D)do none of the above.

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Definitions:

Federal Tax

Taxes imposed by the federal government on income, sales, imports, estates, and gifts, among others, to fund national programs and services.

Demand for Marijuana

The desire for and quantity of marijuana that consumers are willing and able to purchase at various prices.

Market

Any institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of a particular good or service.

Exchange of Goods

The act of giving one thing and receiving another, especially of the same type or value, commonly referred to in the context of trade or barter.