If the Fed Wants to Encourage Bank Lending, Then It

question 36

Multiple Choice

If the Fed wants to encourage bank lending, then it should ________ the required reserve ratio on checkable deposits.

• A)lower
• B)raise
• C)maintain at a constant
• D)the Fed cannot change the required reserve ratio

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Definitions:

Cram

The act of studying intensively over a short period of time just before an examination.

Scientific Attitude

An approach characterized by skepticism, critical thinking, and reliance on empirical evidence for understanding phenomena.

Open-Minded Humility

The disposition to approach ideas, arguments, and information with openness and modesty without assuming one already knows everything there is to know.

SQ3R Study Method

A reading comprehension method designed to help individuals understand, remember, and apply information, standing for Survey, Question, Read, Recite, and Review.