If the Fed Raised the Reserve Requirement, the Demand for Reserves

question 189

Multiple Choice

If the Fed raised the reserve requirement, the demand for reserves would

• A)increase, so the federal funds rate would fall.
• B)increase, so the federal funds rate would rise.
• C)decrease, so the federal funds rate would fall.
• D)decrease, so the federal funds rate would rise.

---

Definitions:

Social Media

Platforms and technologies enabling the creation, sharing, and exchange of information and ideas in virtual communities and networks.

Customer Question

An inquiry made by a customer seeking information or clarification about products, services, or policies from a business.

Expectation

The belief or anticipation about the occurrence of something in the future or about receiving something.

Location-Based Marketing

A marketing strategy that targets consumers based on their geographic location, typically using mobile device technology.