In the Market for Bank Reserves, If the Target Rate

question 21

Multiple Choice

In the market for bank reserves, if the target rate is higher than the cash rate, the Reserve Bank will take action to ________ reserves.

• A) increase the demand for
• B) decrease the demand for
• C) decrease the supply of
• D) increase both the demand for and the supply of
• E) increase the supply of

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Definitions:

Stupid Person

A derogatory term used to describe someone perceived as lacking intelligence or common sense; however, it's subjective and potentially offensive.

Hasty Generalization

A generalization is made from a sample that is too small or biased.

Randomly Selected

Chosen without a specific pattern, order, or principle, often used to ensure fairness or unbiased results in a selection process.

Entire Group

A term referring to all members or components within a specified collection or set without exception.