If the Overnight Rate Is Above Target, the Bank ________

question 32

Multiple Choice

If the overnight rate is above target, the Bank ________ securities to ________ reserves, which ________ the supply of overnight funds and ________ the overnight rate.

• A)buys; increase; decreases; raises
• B)sells; increase; increases; lowers
• C)buys; decrease; decreases; raises
• D)sells; decrease; decreases; raises
• E)buys; increase; increases; lowers

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Definitions:

Predominantly Fixed

A term describing costs or attributes that remain constant and do not vary significantly with activity level.

Intermodal Growth

The expansion and increased use of combining different modes of transportation (such as rail, ship, and truck) for the efficient movement of goods.

Linehaul Freight Carriers

Companies that specialize in the long-distance transportation of goods, typically from one city or metropolitan area to another.

Intermodal Trains

Rail vehicles designed for transporting cargo in a variety of container types, enabling efficient transfer between different modes of transportation like ships and trucks.