An Increase in the Bank Reserves Held by the Fed

question 46

Multiple Choice

An increase in the bank reserves held by the Fed would ________.

• A) decrease the federal funds interest rate
• B) decrease the price level
• C) increase the federal funds rate
• D) decrease the inflation rate

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Definitions:

Income

Earnings obtained from work, investments, or business operations, reflecting the financial gain.

Net Income

Net Income is the total earnings or profit of a company after subtracting all expenses from revenue, indicating the financial performance over a specific period.

Income Statement

A financial statement that shows a company's revenues, expenses, and profitability over a specific accounting period.

Debit Column

The column in a ledger or financial statement where entries of debit are recorded.