If the Federal Reserve Increases the Interest Rate on Bank

question 196

Multiple Choice

If the Federal Reserve increases the interest rate on bank deposits at the Fed, banks will want to hold

• A)fewer reserves, so the reserve ratio will fall.
• B)fewer reserves, so the reserve ratio will rise.
• C)more reserves, so the reserve ratio will fall.
• D)more reserves, so the reserve ratio will rise.

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Definitions:

Relational Aggression

A type of aggression in which harm is caused through manipulation or damage to relationships or social standing.

Physical Aggression

The use of physical force aimed at harming or injuring another person.

Assertiveness

The quality of being self-assured and confident without being aggressive.

Popular Child

A child who is widely liked and accepted by their peers, often demonstrating traits that are valued by the social group such as sociability or charisma.