Reserves Increase If the Federal Reserve

question 41

Multiple Choice

Reserves increase if the Federal Reserve

• A)raises the discount rate or auctions more credit.
• B)raises the discount rate but not if it auctions more credit.
• C)lowers the discount rate or auctions more credit.
• D)lowers the discount rate but not if it auctions more credit.

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Definitions:

Collect Like Terms

The process in algebra of simplifying expressions by combining terms that have the same variables raised to the same power.

Simplify

To make something less complex or easier to understand, often by reducing it to its basic elements.

Simplify

To make something less complicated or easier to understand.

Evaluate

The process of analyzing or examining something to determine its value, condition, or significance.