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.

---

Definitions:

Latin America

A region in the Western hemisphere, primarily speaking Spanish, Portuguese, and French, encompassing countries in both South and Central America, as well as the Caribbean.

Economic Development

The process by which the overall health, well-being, and academic level of the general population of a specific area or country improves.

Disfranchisement

The act of denying someone the right to vote in public elections, often based on legal, socioeconomic, or racial criteria.

Appeal of Forty Thousand

A petition to the Pennsylvania legislature in 1838, calling for the right to vote for Black men, signed by over 40,000 Black and white citizens.