The Fed Attempts to Affect the Level of Borrowed Reserves

question 73

Multiple Choice

The Fed attempts to affect the level of borrowed reserves by

• A)changing the discount rate.
• B)changing legal reserve requirements.
• C)open market sales.
• D)open market purchases.

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Definitions:

Displacement

Moving a troubling impulse onto a different, less threatening object.

Sparring

A form of training common in many combat sports where participants fight each other without intending to cause significant harm.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, effectively ignoring external truths.