The Fed Would Use a Reverse Repo When They

question 14

Multiple Choice

 The Fed would use a reverse repo when they: ?

• A) want to temporarily increase the monetary base.
• B) forecast a permanent decrease in the demand for monetary base.
• C) forecast a permanent increase in the demand for monetary base.
• D) want to temporarily decrease the monetary base.

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Definitions:

Appetite

The natural desire to satisfy a bodily need, especially for food.

Lateral Hypothalamus

A region of the brain involved in controlling hunger, thirst, and other physiological functions.

Ventromedial Hypothalamus

A region of the brain involved in regulating hunger, fullness, and the body's energy homeostasis.

GLP-1

A hormone involved in the regulation of blood sugar levels and appetite, often targeted by diabetes medications.