If There Is a Recession, the Fed Would Most Likely

question 40

Multiple Choice

If there is a recession, the Fed would most likely:

• A) increase bank reserves by raising the discount rate.
• B) increase bank reserves by buying government securities.
• C) decrease bank reserves by raising the discount rate.
• D) decrease bank reserves by selling government securities.

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Definitions:

Specification Limit

Predetermined bounds within which a product or process’s performance must fall to be considered acceptable, often used in quality control.

Standard Deviation

A statistic that measures the dispersion or spread of a set of numbers.

Process Capability Index

A statistical measure that quantifies how well a process is able to produce output within specified limits.

Specification Fill Weight

The predetermined or designed weight of product that a package is intended to hold.