Which of the Following Is Not a Consequence of the Fed

question 10

Multiple Choice

Which of the following is not a consequence of the Fed changing the required reserve ratio?

• A)Changes in the ratio are easily incorporated into banks' routine management.
• B)Decreasing the ratio will increase excess reserves.
• C)Increasing the ratio will decrease the amount of reserves banks have to loan.
• D)Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.

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Definitions:

Ductus Arteriosus

A blood vessel in fetuses that bypasses lung circulation by connecting the pulmonary artery directly to the ascending aorta; it normally closes after birth.

Oxygenated Blood

Blood that has been enriched with oxygen through the process of respiration in the lungs and is ready to be delivered to cells throughout the body.

Digoxin Toxicity

A condition resulting from an overdose of digoxin, a medication used to treat heart conditions, leading to symptoms such as nausea, vomiting, dizziness, and cardiac arrhythmias.

Vomiting

The forceful expulsion of stomach contents through the mouth, often as a reflex action to remove harmful substances or due to illness.