If There Is a Recession, the Fed Would Most Likely

question 85

Multiple Choice

If there is a recession, the Fed would most likely

• A) increase bank reserves by raising the discount rate.
• B) increase bank reserves by buying government securities.
• C) decrease bank reserves by raising the discount rate.
• D) decrease bank reserves by selling government securities.
• E) decrease bank reserves by lowering the legal reserve requirement.

---

Definitions:

Custom Tab Stop

A user-defined stopping point set along the horizontal ruler in word processing programs to align text.

Tab Marker

A marker in document editing software that denotes where the cursor will stop when the Tab key is pressed.

Ruler

A tool in document and graphic design software that helps the user align text, graphics, or other elements by providing a visual guide for measurement and layout.

Paragraph Object

An element in programming dealing with text operations, representing a paragraph, allowing for manipulation and formatting within documents.