The Fed's Power to Set the Required Reserves of Commercial

question 113

Multiple Choice

The Fed's power to set the required reserves of commercial banks:

• A) provides a certain source of interest income for commercial banks.
• B) allows the Fed to control the lending ability of commercial banks and, thereby, control the money supply.
• C) prevents banks from hoarding too much vault cash.
• D) prevents commercial banks from earning excess profits.

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Definitions:

Calcaneus

The large bone in the heel of the foot, forming the foundation of the rear part of the foot.

Antagonistically

Referring to muscles that work in opposition to each other to create movement, such as the biceps and triceps during arm movements.

Flexor Digitorum Longus

A muscle in the lower leg that flexes the toes.

Tibialis Anterior

A muscle located in the front part of the shin that dorsiflexes and inverts the foot.