If the Level of Excess Reserves in the Banking System

question 81

Multiple Choice

If the level of excess reserves in the banking system drops suddenly, we might expect that the:

• A)discount rate would rise.
• B)federal funds rate would rise.
• C)required reserve ratio would fall.
• D)prime rate would fall.

---

Definitions:

Incomplete Fractures

A type of bone fracture where the bone cracks but does not break all the way through.

Fragments

Small parts or pieces that have broken off from a whole, often resulting from decay, damage, or destruction.

Heimlich Maneuver

An emergency technique used to expel an object from the airway of a person who is choking.

Choking

The obstruction of the upper airway by food or other objects, which can block airflow and cause a serious emergency.