The Federal Funds Rate and the Quantity Demanded of Reserves

question 39

Multiple Choice

The federal funds rate and the quantity demanded of reserves have a(n) ____________ relationship.This is because as the federal funds rate moves down,it becomes _______________ for banks to hold reserves,encouraging banks to hold ____________ in reserves to guard against checkable deposit withdrawals.

• A) inverse; more expensive; more
• B) direct; more expensive; less
• C) inverse; cheaper; more
• D) direct; cheaper; more

Understand the concept and application of correlation in psychological research.

Identify ethical considerations in psychological research, including issues of consent and animal welfare.

Differentiate between sex and gender and understand gender roles.

Understand the principles of representative sampling in research.

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Definitions:

Progressive

A term often used in the context of taxation or political ideology, indicating policies or stances that aim to redistribute resources from the more affluent to the less affluent.

Income Tax

Tax levied by a government directly on income, especially an annual tax on personal income.

Work and Leisure

Describes the balance between the time and effort spent in gainful employment and the time spent in recreational activities or rest.

Second Best

Refers to a situation wherein the optimal condition cannot be achieved, and the best possible alternative under the given restrictions is adopted.