Which of the Following Is Likely to Increase the Federal

question 51

Multiple Choice

Which of the following is likely to increase the federal funds rate?

• A) An increase in the quantity of required reserves
• B) A decrease in the supply of bank reserves
• C) An increase in the interest paid on reserves deposited at the Fed
• D) The purchase of long-term bonds in open market operations

---

Definitions:

Concrete Operations

A stage in Piaget's theory of cognitive development, typically occurring between ages 7 and 11, where children gain the ability to think logically about concrete events.

Formal Operations

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly, reason logically, and manage ideas in the mind without concrete manipulation.

Sensory-Motor

Referring to the processing of sensory information and motor response.

Preoperational

Referring to Piaget’s developmental stage where children ages 2-7 engage in symbolic play but struggle with logic and taking the perspective of others.