In the Market for Reserves,if the Federal Funds Rate Is

question 3

Multiple Choice

In the market for reserves,if the federal funds rate is between the discount rate and the interest rate paid on excess reserves,a ________ in the reserve requirement ________ the demand for reserves,raising the federal funds interest rate,everything else held constant.

• A)rise;decreases
• B)rise;increases
• C)decline;increases
• D)decline;decreases

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Definitions:

Implied Warranties

Implied warranties are unspoken, unwritten promises that a product will meet a minimum quality and functional standards.

Material Terms

In a contract, the terms that allow a court to determine what the damages are in the event that one of the parties breaches the contract; include the subject matter, quantity, price, quality, and parties.

Express Warranties

Explicit guarantees made by a seller that affirm or promise specific attributes or conditions of a product.

Statute of Limitations

A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.