Which of the Following Changes Is Observed When the Fed

question 122

Multiple Choice

Which of the following changes is observed when the Fed increases the federal funds rate?

• A)Inflation is brought to an immediate halt.
• B)The inflation rate increases for several months,but then begins to decrease.
• C)Major banks try to offset this change by lowering the interest rates they charge on loans.
• D)Major banks try to offset this change by lowering the interest rates they pay on savings deposits.
• E)Major banks raise the prime interest rate that they charge to their best customers.

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Definitions:

Choking Hazard

Small objects or food items that can potentially block the airway if swallowed, posing a risk especially to children.

Best Accommodate

To make the necessary adjustments or modifications to optimally serve or meet the needs of someone or something.

Carpeting

Floor covering made of thick woven fabric or synthetic fibers, used for its acoustic and comfort properties.

120 Square Foot

A measurement of area equivalent to a space that is 120 square feet in size, often used to describe the size of a small room.