To Prevent Shortages of Cash During a Crisis,the Fed

question 24

Multiple Choice

To prevent shortages of cash during a crisis,the Fed:

• A)saves up cash in bank vaults around the country and the world.
• B)reduces liquidity in the economy so that more cash can be saved.
• C)sells U.S.government securities to commercial banks.
• D)demands interest payments on reserves held at the Fed.
• E)increases the discount rate.

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Definitions:

Revenue Model

A framework for generating financial income. It outlines the sources of revenue, pricing strategies, and target customers.

Audience Concerns

The questions, needs, interests, or reservations held by a group of individuals that are addressed through various forms of communication.

Sales Proposal

A written offer from a seller to a prospective buyer, detailing the products or services offered and the terms under which the seller is willing to supply them.

Costs

The amount of money required for the production, acquisition, or maintenance of goods and services.