Which of the Following Is Most Likely to Occur If

question 30

Multiple Choice

Which of the following is most likely to occur if the quantity demanded of reserves is greater than the quantity supplied of reserves?

• A)The fed funds rate will fall.
• B)The fed funds rate will rise.
• C)Discount borrowing will decrease.
• D)Both the fed funds rate will rise and discount borrowing will decrease.

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Definitions:

Gas Utility

Companies that provide natural gas services to residential, commercial, and industrial customers.

Market Structure

The competitive environment characterizing a market, determined by the number of firms, product differentiation, and ease of entry and exit.

Agricultural Products

Goods derived from agriculture including crops, livestock, and products directly obtained from farming activities.

Wheat

Wheat is a cereal grain grown worldwide and is a staple food ingredient used for making bread, pasta, cake, and many other food products.