Which Action Would Allow Banks to Lend Out More Money

question 247

Multiple Choice

Which action would allow banks to lend out more money?

• A) an increase in the required reserve ratio
• B) a decrease in the bank rate
• C) an increase in the overnight rate
• D) an increase in the required reserve ratio coupled with an increase in the overnight rate

---

Definitions:

Severance Pay

Severance pay is compensation provided to an employee after termination from a job, usually based on length of service or the terms of employment.

Terminated Employees

Individuals whose employment has been ended by their employer, for reasons that may include redundancy, misconduct, or mutual agreement.

Markov Analysis

A statistical technique used to forecast future behavior based on historical data, often applied in decision-making processes.

Skill Levels

The classification of employees or tasks based on the complexity, required expertise, and responsibilities associated with a job.