Suppose the Federal Reserve Wanted to Reduce the Money Supply

question 57

Multiple Choice

Suppose the Federal Reserve wanted to reduce the money supply without using open-market operations.It could try to get the public to ________ their currency-deposit ratio and ________ banks' reserve requirements,which would in turn change the banks' reserve-deposit ratio.

• A)decrease; lower
• B)decrease; raise
• C)increase; lower
• D)increase; raise

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Definitions:

Tetrapods

Vertebrates with four limbs or limb-like appendages, including amphibians, reptiles, birds, and mammals.

Ray-Finned Fishes

A diverse group of fishes known for their fins which are supported by long, bony rods arranged in a ray pattern.

Vertebrate Jaw

A structural feature found in vertebrates that is composed of bony or cartilaginous structures surrounding the mouth, utilized for biting, chewing, and manipulation of food.

Amphibians

A class of cold-blooded vertebrates that live both in water and on land, such as frogs and salamanders.