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:

Opportunity for Advancement

The potential for individuals to progress within their careers, often through promotions, skill development, and taking on new responsibilities.

Hierarchy Principle

A principle stating that organizations are structured in a series of levels of authority, with each level accountable to the level above.

Progression Principle

In fitness and training, the concept that the intensity and duration of exercise must gradually increase to improve fitness levels.

Maslow

A psychologist known for proposing the hierarchy of needs theory, suggesting that people are motivated to fulfill basic needs before moving on to higher levels of need.