If the Federal Funds Rate Falls Below the Targeted Rate

question 34

Multiple Choice

If the federal funds rate falls below the targeted rate, the Trading Desk ____ the amount of reserves available to depository institutions in order to bring the fed funds rate back to the targeted level.

• A)reverses
• B)increases
• C)decreases
• D)leaves the same

---

Definitions:

Life-Threatening Trauma

Severe injury or shock to the body caused by violent events or accidents, which has the potential to lead to death.

Empathetic Communicator

A person who effectively understands and expresses empathy through their communication, fostering stronger interpersonal connections.

Assertive

Displaying confidence and directness in claiming one's rights or putting forward one's demands without being aggressive.

Subordinately Defensive

A behavior exhibited by lower-ranking individuals in a hierarchy, aimed at protecting themselves from perceived threats or aggression from more dominant figures.