If There Is a Recession, the Fed Would Most Likely

question 85

Multiple Choice

If there is a recession, the Fed would most likely

• A) increase bank reserves by raising the discount rate.
• B) increase bank reserves by buying government securities.
• C) decrease bank reserves by raising the discount rate.
• D) decrease bank reserves by selling government securities.
• E) decrease bank reserves by lowering the legal reserve requirement.

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Definitions:

External Locus

The belief that one's outcomes in life are determined by external forces or events, rather than by one's own efforts.

Type B

Describes a personality typology characterized by a relaxed, patient, and easy-going nature.

Type A

Refers to a personality type characterized by high levels of competitiveness, self-imposed stress, and a sense of urgency, often linked with stress-related health issues.

Mindfulness Meditation

A practice focusing on present moment awareness, often used for stress reduction and to develop a deeper awareness of thoughts and emotions.