If the Fed Wanted to Shift to a Restrictive Monetary

question 185

Multiple Choice

If the Fed wanted to shift to a restrictive monetary policy and reduce the money supply, it could

• A) decrease the reserve requirements imposed on commercial banks.
• B) purchase U.S. government securities and other financial assets in the open market.
• C) decrease the interest rate on loans extended to banks and other financial institutions.
• D) increase the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans.

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Definitions:

Large "C" Type

This term appears to be unclear or not widely recognized in a general context as a specific key term, thus an accurate definition cannot be provided.

Brainstorming

Brainstorming is a creative group activity designed to generate a large number of ideas for the solution to a problem.

Nominal Group Method

A structured form of brainstorming that involves individuals working together to generate ideas and achieve consensus.

Anonymous

Without any name acknowledged, as that of an author, contributor, or the like; lacking individuality, unique character, or distinction.