The Best Way for Federal Reserve Board Officials to Help

question 33

Multiple Choice

The best way for Federal Reserve Board officials to help boost a stagnant economy is to

• A) raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses.
• B) lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses.
• C) take money out of circulation so that the dollar becomes more valuable.
• D) raise the reserve requirement, restricting the amount of cash and negotiable securities banks must have on hand.
• E) lower tariffs so that corporations can trade more freely with foreign countries.

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Definitions:

Glucocorticoid Secretion

The production and release of glucocorticoids, a type of steroid hormone involved in the regulation of glucose metabolism, immune response, and stress response.

Adrenal Cortex

The outer portion of the adrenal gland that produces steroid hormones which regulate carbohydrate and fat metabolism and mineralocorticoid hormones that regulate salt and water balance.

Plasma Levels

The concentration of substances in the blood plasma, often used to measure the amount of drugs, hormones, and other components.

Zona Fasciculata

Middle layer of the adrenal cortex that secretes cortisol.