Which of the Following Combinations of Fed Actions Would Be

question 33

Multiple Choice

Which of the following combinations of Fed actions would be most effective in "mopping up" reserves away from the banking system?

• A)reducing the interest paid on excess reserves and also doing "repos" with banks and nonbanks
• B)raising the interest paid on excess reserves and also doing "repos" with banks and nonbanks
• C)reducing the interest paid on excess reserves and also doing "reverse repos" with banks and nonbanks
• D)raising the interest paid on excess reserves and also doing "reverse repos" with banks and nonbanks

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Definitions:

Schwann Cells

Glial cells located in the peripheral nervous system, responsible for the myelination of neuronal axons, thereby increasing the speed of electrical impulses.

Central Nervous System

The division of the nervous system consisting of the brain and spinal cord, which integrates sensory information and directs bodily responses.

Atom

The basic unit of a chemical element, consisting of a nucleus surrounded by electrons.

Neutron

A neutron is a subatomic particle found in the nucleus of an atom, lacking an electric charge and possessing a mass slightly greater than that of a proton.