If the Fed Wants to Increase Bank Reserves,it Can

question 5

Multiple Choice

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

• A) Raise the discount rate.
• B) Buy government bonds from the public.
• C) Increase the minimum reserve ratio.
• D) Decrease the money multiplier.

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Definitions:

Basic Resources

Fundamental materials, services, and supports needed for individuals or communities to function and thrive.

Socially Expected

Behaviors or norms that are anticipated and considered normal within a society or group.

Family Norms

Social rules or standards shared within a family group, guiding behaviors and expectations among its members.

Subsystems

Components or smaller systems that operate within a larger system, each with its role and function.