Which of the Following Would Most Likely Decrease the Federal

question 7

Multiple Choice

Which of the following would most likely decrease the Federal Funds rate?

• A) decrease in the discount rate.
• B) sale of securities by the Fed.
• C) decrease in reserve requirements.
• D) none of the above

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Definitions:

Insanity Defense

A legal defense used in criminal trials arguing that the defendant was not responsible for their actions due to psychiatric illness at the time of the crime.

Criminals

Individuals who have committed acts that violate laws and are therefore subject to legal punishment.

Tarasoff

Refers to a legal case and resulting duty that mandates mental health professionals to warn individuals of credible threats made against them by a patient.

Therapist

A professional trained to treat emotional, mental, and behavioral disorders through various psychological techniques and therapies.