Which of the Following Changes Is Observed When the Fed

question 148

Multiple Choice

Which of the following changes is observed when the Fed increases the federal funds rate?

• A) Inflation is brought to an immediate halt.
• B) The inflation rate increases for several months, but then begins to decrease.
• C) Major banks try to offset the change in the federal funds rate by lowering the interest rates they charge on loans.
• D) Major banks try to offset the change in the federal funds rate by lowering the interest rates they pay on savings deposits.
• E) Major banks raise the prime interest rate that they charge to their best customers.

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Definitions:

Workaholism

A condition characterized by an uncontrollable need to work incessantly, often at the expense of personal relationships and health.

Paid Vacation

Employment benefit allowing employees to take time off work while still receiving their regular pay, enabling rest, travel, or personal activities.

Work Phone

A telephone designated for business use, either provided by an employer or dedicated by an individual for work-related communication.

Industrial Accidents

Unplanned events that occur in the workplace resulting in injury, death, or property damage.