If the Fed Wants to Reduce Bank Reserves,it Can

question 143

Multiple Choice

If the Fed wants to reduce bank reserves,it can:

• A) Raise the discount rate or buy bonds on the open market.
• B) Reduce the minimum reserve ratio or sell bonds on the open market.
• C) Raise the discount rate or sell bonds on the open market.
• D) Decrease the minimum reserve ratio or reduce the discount rate.

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Definitions:

Common Disorder

A term that refers to diseases, illnesses, or psychological conditions that occur frequently in the general population.

Professional Help

Expert advice or services provided by individuals with specialized knowledge or skills, particularly in fields such as medicine, psychology, or law.

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A measure or extent of suffering or discomfort, whether physical, psychological, or emotional.

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A psychological struggle within the mind that occurs without conscious awareness, often stemming from unresolved issues or desires, as highlighted in psychoanalytic theory.