A Change in the Reserve Requirement Is Used Infrequently by the Fed

question 5

Multiple Choice

A change in the reserve requirement is used infrequently by the Fed because it

• A) is disruptive to the banking system.
• B) does not influence the money supply.
• C) does not affect bank reserves.
• D) does not affect the money multiplier.

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Definitions:

Pustule

A small, inflamed, pus-filled blister on the skin, often indicating an infection.

Intradermal

Pertaining to within the layers of the skin.

Tine

A prong or sharp point, such as those on a fork or antler.

Lancet

A small, sharp surgical instrument used for making incisions, especially in the skin.