If the Federal Reserve Increases the Interest Rate on Bank

question 21

Multiple Choice

If the Federal Reserve increases the interest rate on bank deposits at the Fed,banks will want to hold

• A)fewer reserves,so the money multiplier will fall.
• B)fewer reserves,so the money multiplier will rise.
• C)more reserves,so the money multiplier will fall.
• D)more reserves,so the money multiplier will rise.

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Definitions:

IMEI

International Mobile Equipment Identity, a unique code used to identify mobile phones and certain other devices.

DHCP Server

A server configured to assign IP addresses automatically to devices on a network.

IP Addresses

Unique numeric identifiers assigned to each device connected to a computer network that uses the Internet Protocol for communication, enabling devices to locate and communicate with each other.

Hotspot

A place where individuals can connect to the internet, usually through Wi-Fi, by means of a wireless local area network (WLAN) that is linked to an internet service provider via a router.