When the Fed Increases the Reserve Requirement, Banks

question 36

Multiple Choice

When the Fed increases the reserve requirement, banks

• A) must increase the dollar volume of loans they make to customers.
• B) must pay more to borrow from the Fed.
• C) have fewer funds available for lending.
• D) will find their balance sheets temporarily out of balance.

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Definitions:

Institution Of Slavery

A legalized system in which individuals are owned by others, deprived of personal freedom, and forced to work without wages.

Slave Narratives

First-hand accounts and autobiographies written or narrated by former slaves, documenting their experiences and the conditions of slavery in history.

Psychological Trauma

A type of damage to the mind that occurs as a result of a distressing event, leading to overwhelming amounts of stress that exceed the individual's ability to cope.

Natural Increase

The growth of a population through excess of births over deaths, excluding the effects of migration.