Which of the Following Actions Would Allow Banks to Lend

question 414

Multiple Choice

Which of the following actions would allow banks to lend out more money?

• A)an increase in the required reserve ratio
• B)a decrease in the discount rate
• C)an increase in the federal funds rate
• D)an increase in the required reserve ratio coupled with an increase in the federal funds rate

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Definitions:

Performance And Satisfaction

The relationship between how well individuals or groups meet their objectives and their contentment or happiness with the outcomes.

Coercive Power

A form of power based on the ability to compel others to comply through threats, punishment, or force.

Control Rewards

A management strategy that involves the use of incentives and benefits to influence employee behavior and increase productivity.

Referent Power

Refers to the ability of a leader to influence others because they respect, admire, or like the leader.