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:

Settle

To resolve or conclude an agreement or debt, often implies paying off a balance owed.

Invoice

A document sent by a seller to a buyer, detailing a transaction and requesting payment.

Payment

The action or process of paying someone or something or the amount paid.

Cash Discount

A discount allowed for a payment within the discount period.