The Best Way for Federal Reserve Board Officials to Help

question 30

Multiple Choice

The best way for Federal Reserve Board officials to help boost a stagnant economy is to

• A)raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses.
• B)lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses.
• C)take money out of circulation so that the dollar becomes more valuable.
• D)raise the reserve requirement,restricting the amount of cash and negotiable securities banks must have on hand.

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Definitions:

Organism's

Refers to any individual living entity, from single-celled microorganisms to plants and animals, including humans.

Observable Characteristics

Traits or features that can be seen or measured directly.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.

Genotype

The genetic makeup of an organism, determining inherited traits.