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

question 120

Multiple Choice

In the market for reserves,if the federal funds rate is above the interest rate paid on excess reserves,an open market sale ________ the supply of reserves causing the federal funds rate to ________,everything else held constant.

• A)decreases;decrease
• B)increases;decrease
• C)increases;increase
• D)decreases;increase

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Definitions:

Litigation

The process of taking legal action or engaging in a lawsuit to resolve disputes between parties.

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Entitlements or permissions under the law that can be enforced or recognized by legal institutions.

Bad Faith

Dishonest dealing, failing to meet obligations, or violating standards of honesty in transactions.

Breach Of An Insurance Contract

The failure by either the insurer or the insured to fulfill their contractual obligations under the terms of an insurance policy.