Which of the Following Actions by the Fed Most Likely

question 143

Multiple Choice

Which of the following actions by the Fed most likely increase commercial bank lending?

• A) Raising the reserve ratio.
• B) Increasing the federal funds rate target.
• C) Reducing the interest paid on reserves held at the Fed.
• D) Selling bonds to commercial banks and the public.

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Definitions:

Average Fixed Cost

The constant expenses linked to manufacturing, when divided by the volume of goods produced, reduce as the amount of production expands.

Mixers

Devices used to blend or mix ingredients together in cooking or industrial processes.

Average Fixed Cost

When you divide the unchanging production costs by the total units produced, this value diminishes as the level of production goes up.

Mixers

Devices or software used to combine, adjust, and control the levels of different audio signals.