Which of the Following Statements Is Not Correct

question 108

Multiple Choice

Which of the following statements is not correct?

• A)The current target of the FOMC is the federal funds rate
• B)If the Fed were to target the quantity of reserves, a decrease in reserve demand would result in a lower federal funds rate
• C)If the Fed were to target the quantity of reserves, an increase in reserve demand would raise the federal funds rate
• D)The Fed can target both the quantity of reserves and the federal funds rate simultaneously

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Definitions:

Bicycle

A human-powered, pedal-driven vehicle with two wheels attached to a frame, one behind the other.

Punctuation

The use of special marks in writing to clarify meaning and separate linguistic units.

Imperative Statement

An imperative statement is a command or instruction given in direct and clear terms, often used to direct action.

Pronoun Case

The grammatical category of pronouns based on their function in a sentence, including subject, object, and possessive cases.