The Effect of an Increase of Required Reserves by the Fed

question 116

Multiple Choice

The effect of an increase of required reserves by the Fed is:

• A)a decrease in loanable funds of depository institutions
• B)a decrease in interest rates
• C)usually an increase in vault cashan increase of excess reserves
• D)to stimulate activity in the home construction field

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Definitions:

Discourse

A way of speaking or writing on a particular subject, often indicating power relations and shaping understanding within a social context.

Truth

The quality or state of being true, often refers to facts or reality as opposed to falsehood.

Foucault

Foucault refers to Michel Foucault, a French philosopher and social theorist known for his influential ideas on power, knowledge, and the relationship between society and individuals.

Hurricane Katrina

A devastating Category 5 hurricane that struck the Gulf Coast of the United States in August 2005, causing widespread destruction and significant loss of life.