Suppose That Banks Decide to Hold More Excess Reserves Relative

question 251

Multiple Choice

Suppose that banks decide to hold more excess reserves relative to deposits.Other things the same,this action will cause the

• A)money supply to fall.To reduce the impact of this the Fed could lower the discount rate.
• B)money supply to fall.To reduce the impact of this the Fed could raise the discount rate.
• C)money supply to rise.To reduce the impact of this the Fed could lower the discount rate.
• D)money supply to rise.To reduce the impact of this the Fed could raise the discount rate.

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Definitions:

Systemic Discrimination

Discrimination that is ingrained in the structures and processes of a society or organization, affecting groups of people.

Foreign Education

The process of seeking and attaining education outside one's home country, often involving adaptation to new academic systems and cultures.

Toronto

The largest city in Canada, known for its diversity, cultural venues, and economic opportunities, located in the province of Ontario.

Ageism

The phenomena of negativity or discrimination aimed at individuals due to their perceived older age, impacting their opportunities and treatment in society.