Recall Application 2, "The Growth in Excess Reserves" to Answer

question 169

Multiple Choice

Recall Application 2, "The Growth in Excess Reserves" to answer the following questions:
-Based on what you learned from the application, the Fed can increase incentives for banks to lend less and decrease the money supply by:

• A) raising the interest rate for excess reserves.
• B) lowering the reserve requirement.
• C) lowering the interest rate for excess reserves.
• D) All of the above are correct.

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Definitions:

Cost Accounting System

A system of accounting for recording, classifying, allocating, summarizing, and analyzing various alternative courses of action for controlling costs.