Which of the Following Is the Most Likely Effect When

question 31

Multiple Choice

Which of the following is the most likely effect when the Fed increases the supply of funds to the banking system?

• A)higher interest rates offered on bank deposits
• B)lower yields on debt securities
• C)higher interest rates on home mortgages
• D)higher interest rates on loans to businesses

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Definitions:

Percentage Point

A unit for measuring the difference between percentages, emphasizing the change in values over time.

Slope

In mathematics, the slope represents the rate of change between two points on a line, indicating its steepness and direction.

Positive

A term indicating the presence of or addition to something, often used in a favorable or optimistic sense.

Relation

In mathematics and computer science, it is a set of ordered pairs, showing how two sets of objects are related to each other.