If the Fed Wants to Reduce Banks' Reserves, It Can

question 150

Multiple Choice

If the Fed wants to reduce banks' reserves, it can

• A)buy securities in the open market.
• B)lower the reserve ratio.
• C)lower the federal funds rate.
• D)raise the discount rate.

---

Definitions:

Subjective Interpretation

An individual's personal, biased understanding of a concept, message, or situation, influenced by emotions, beliefs, and experiences.

Sensory Receptors

Cells or organs tuned to respond to specific stimuli in the environment, such as light, sound, or pressure, and convert them into electrical impulses.

Perception

The cognitive process of interpreting and organizing sensory information from the environment to understand and interact with it.

Sensation

Registration by the sensory organs of physical stimuli from the environment.