Which of the Following Is Not a Consequence of the Fed

question 10

Multiple Choice

Which of the following is not a consequence of the Fed changing the reserve requirement?

• A)Changes in the ratio are easily incorporated into banks' routine management.
• B)Decreasing the ratio will increase excess reserves.
• C)Increasing the ratio will decrease the amount of reserves banks have to loan.
• D)Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.

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Definitions:

Parathyroid Hormone

A hormone secreted by the parathyroid glands that regulates calcium levels in the blood, critical for maintaining bone health and function.

Kidney

An organ in vertebrates that filters waste products from the blood, regulates blood pressure, electrolyte balance, and red blood cell production.

Liver

Largest gland of the body, lying in the upper-right quadrant of the abdomen just inferior to the diaphragm; secretes bile and is of great importance in carbohydrate and protein metabolism and in detoxifying chemicals.

Hyperkalemia

Greater than normal concentration of potassium ions in the circulating blood.