The Best Way for Federal Reserve Board Officials to Help

question 51

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 that banks must have on hand.

---

Definitions:

Adrenal Glands

Small, triangular glands located on top of the kidneys; they produce hormones that help regulate metabolism, immune system, blood pressure, and stress responses.

Gonads

The primary reproductive organs, ovaries in females and testes in males, producing gametes and sex hormones.

Blood Cells

The cells that circulate in the blood, including red blood cells, white blood cells, and platelets.

Cardiovascular

Pertaining to the heart and blood vessels, and the circulation of blood throughout the body.