If the Fed Wants to Increase Bank Reserves,it Can

question 21

Multiple Choice

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

• A) Buy bonds.
• B) Raise the discount rate.
• C) Raise the reserve requirement.
• D) Sell bonds.

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Definitions:

Histogram

A graphical representation of the distribution of numerical data, using bars of different heights.

Representative

Term used to describe a subset or a sample that accurately reflects the larger population or dataset from which it is drawn.

Mean

The mean is the average of a set of numbers, calculated by dividing the sum of these numbers by the count of the numbers.

Observations

Data points or individual pieces of data collected through experimentation, measurement, or survey.