Refer to the Figure

question 29

Multiple Choice

Refer to the figure.
When wolves first returned to Yellowstone, coyote populations were reduced by nearly 50%. What impact do you think this would have had, for example, on foxes?

• A) They would be driven to extinction.
• B) Their population would remain unchanged, as wolves were killing coyote, not foxes.
• C) Their population would increase due to less competition from coyote for small mammals.
• D) Their population would be reduced similarly to that of the coyotes.

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Definitions:

Federal Banks

Centralized banking institutions established by a country to oversee the monetary system and implement national economic policies.

State Banks

Financial institutions chartered by a state to provide banking services.

National Banks

Financial institutions that are chartered by the federal government and play a key role in the country’s financial system and economy.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from the Federal Reserve Bank's lending facility.