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.

Select sentences that use concise, fresh language.

Choose vivid and exact words to complete sentences.

Distinguish between specific and general statements in sentence construction.

Understand the concept of conciseness and clarity in written communication.

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Definitions:

Original Check

The first print or version of a check before it is copied or electronically presented.

Paid Twice

A situation where an individual or entity receives payment for the same service or goods more than once.

Altered Amount

A value or figure that has been modified or changed, usually in the context of financial transactions, documents, or reports, to differ from its original state.

Customer's Negligence

The failure of a customer to exercise reasonable care, leading to loss or damage.