If Reserve Demand Is Volatile, in Order for the Central

question 44

Multiple Choice

 If reserve demand is volatile, in order for the central bank to keep interest rates from being volatile, it must: 

• A) target the quantity of reserves.?
• B) set targets for both interest rates and the quantity of reserves.?
• C) not target the interest rates.?
• D) let the quantity of reserves fluctuate.

---

Definitions:

Markup Percent

The percentage added to the cost price of goods to cover overhead and profit, expressed as a portion of the cost.

Meat Slicing Machine

A device used in the preparation of food to slice meat thinly and consistently.

Percent Markup

The percentage added to the cost price of goods to achieve a selling price.

Fax Machine

A device that transmits scanned documents as a telephone transmission to a receiving machine producing a copy.