In the Market for Reserves,a Lower Interest Rate Paid on Excess

question 37

Multiple Choice

In the market for reserves,a lower interest rate paid on excess reserves

• A)decreases the supply of reserves.
• B)increases the supply of reserves.
• C)decreases the effective floor for the federal funds rate.
• D)increases the effective floor for the federal funds rate.

---

Definitions:

Interpretive Rules

Regulations issued by administrative agencies to clarify and explain the meaning and intent of statutes they enforce.

Ad Testificandum Subpoenas

A legal document that orders a person to testify in court.

Duce Tecum Subpoenas

Legal orders requiring a person to bring documents or records to a court proceeding or deposition.

Fourth Amendment

A provision in the United States Constitution that protects citizens from unreasonable searches and seizures by the government.