When the Federal Reserve Wishes to ________ Interest Rates, It

question 2

Multiple Choice

When the Federal Reserve wishes to ________ interest rates, it ________ the amount of funds at commercial banks.

• A) increase; increases
• B) reduce; reduces
• C) reduce; increases
• D) Both A and B are correct.

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Definitions:

Lithosphere

The lithosphere is the rigid outer layer of the Earth, encompassing the crust and the uppermost part of the mantle, characterized by its solid state and involvement in tectonic activities.

Upper Mantle

The part of the Earth's mantle that lies just beneath the lithosphere, involved in tectonic movements and convection processes.

Crust

The outermost solid shell of a rocky planet, dwarf planet, or natural satellite, distinct from the underlying mantle.

Geologist

A scientist who studies the Earth, including its composition, structure, processes, and history, often focusing on minerals, rocks, and geological features.