Raising the Interest Paid on Reserves Has the Effect of Making

question 265

Multiple Choice

Raising the interest paid on reserves has the effect of making it

• A) more costly for banks to hold excess reserves.
• B) less costly for banks to hold excess reserves.
• C) more attractive for banks to lend out their excess reserves.
• D) less attractive for banks to hold required reserves.

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Definitions:

Directed Remembering

Directed remembering involves consciously focusing one's effort to recall specific information or memories when prompted.

Goal-driven

Behavior or activity that is directed towards achieving specific objectives or outcomes.

Information Recall

The ability to retrieve and reproduce information from memory that was previously learned or experienced.

Analogical Inconsistency

Discrepancies or lack of uniformity in reasoning or outcomes when comparing two similar situations or analogies.