The Demand Curve for Reserves Shifts to the Left and the Federal

question 45

Multiple Choice

The demand curve for reserves shifts to the left and the federal funds rate falls when the Fed

• A) decreases reserve requirements or does an open market purchase.
• B) lowers the discount rate.
• C) lowers the discount rate or does an open market purchase.
• D) decreases reserves requirements.
• E) does an open market sale.

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Definitions:

Zygote

The fertilized egg, formed by the union of sperm and egg.

Chromosomes

Structures in the nucleus of each cell that contain the genes, the units of hereditary transmission. A human cell has 46 chromosomes arranged in 23 pairs.

Genetics

The study of genes, heredity, and the variations in living organisms that are influenced by their DNA.

Environment

The environment refers to the physical, chemical, and biological factors and conditions that influence the life and development of organisms.