If There Is a Recession, the Fed Would Most Likely

question 85

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.
• E) decrease bank reserves by lowering the legal reserve requirement.

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Definitions:

Cycling Safety

The practices, measures, and regulatory standards set to protect cyclists and reduce the risk of accidents and injuries while cycling.

Elementary School

A school for early education that teaches children from kindergarten through to fifth or sixth grades.

Exchange

The act of giving one thing and receiving another in return, often used in the context of trading goods, services, or currencies.

Production-oriented Era

Refers to a period in business history where the focus was primarily on production efficiency, manufacturing, and product capabilities rather than the needs or desires of customers.