Everything Else Held Constant,in the Market for Reserves,when the Federal

question 12

Multiple Choice

Everything else held constant,in the market for reserves,when the federal funds rate is 3%,increasing the interest rate paid on excess reserves from 1% to 2%

• A)lowers the federal funds rate.
• B)raises the federal funds rate.
• C)has no effect on the federal funds rate.
• D)has an indeterminate effect on the federal funds rate.

---

Definitions:

Rubber Gasket

A mechanical seal that fills the space between two or more mating surfaces, generally to prevent leakage from or into the joined objects while under compression.

Pneumatic Wrench

A tool powered by compressed air used for tightening or loosening nuts and bolts with high torque.

Normal Time

The amount of time that should be required to complete a task under normal working conditions, without any delays.

Standard Time

A set duration established for performing a specific task, used for planning and efficiency purposes.