If the Fed Is Concerned with a Potential Recession, What

question 79

Multiple Choice

If the Fed is concerned with a potential recession, what course of action should it take?

• A) Lower the reserve requirement and sell securities.
• B) Lower the discount rate and increase the reserve requirement.
• C) Sell securities and lower the discount rate.
• D) Buy securities and lower the discount rate.
• E) Buy securities and increase the reserve requirement.

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Definitions:

Plant Cover

The layer of vegetation that covers the ground, which can reduce soil erosion and provide habitat for wildlife.

Transpiration

Evaporation of water from aboveground plant parts.

Polar Latitudes

Regions near the poles of the Earth, characterized by extreme cold and seasonal variations in daylight.

Equatorial Latitudes

The region near the equator, characterized by a hot climate year-round due to receiving the most direct sunlight.