The Fed Can Increase the Amount of Excess Reserves in the Banking

question 127

Multiple Choice

The Fed can increase the amount of excess reserves in the banking system by

• A)lending at the discount window
• B)raising the required reserve ratio
• C)selling securities
• D)lowering the federal funds rate
• E)selling off member banks

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Definitions:

Decentration

Simultaneous focusing (centering) on more than one aspect or dimension of a problem or situation.

Concrete Operational

A stage in Piaget's theory of cognitive development (ages 7-12) where children gain a better understanding of concrete events and logical operations, but struggle with abstract concepts.

Phonics

A method of teaching reading and spelling that stresses symbol-sound relationships, used especially in early grades.

Language

A system of communication used by a particular community or country, consisting of written, spoken, or gestural symbols.