If the Fed Increases the Required Reserve Ratio at a Time

question 25

Multiple Choice

If the Fed increases the required reserve ratio at a time when banks are holding excess reserves,then:

• A)the Fed's aim is to increase the money supply.
• B)banks are likely to lend out more money than they would if the Fed left the reserve ratio alone.
• C)banks are likely to earn higher profits than they would.
• D)the money supply will not increase as much as it would if the Fed left the reserve ratio alone.
• E)the Fed's aim is to conduct open market operations without changing the money supply.

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Definitions:

Dependent Personality Disorder

A personality disorder characterized by a pattern of clinging and obedience, fear of separation, and an ongoing need to be taken care of.

Dependent Personality Disorder

A psychiatric condition characterized by an excessive need to be taken care of, leading to submissive and clinging behavior and fears of separation.

Obsessive-Compulsive Disorder

A mental disorder where people feel the need to check things repeatedly, perform certain routines repeatedly, or have certain thoughts repeatedly, causing significant distress or impairment.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and mental and interpersonal control, at the expense of flexibility, openness, and efficiency.