If the Federal Reserve Increases the Interest Rate on Bank

question 21

Multiple Choice

If the Federal Reserve increases the interest rate on bank deposits at the Fed,banks will want to hold

• A)fewer reserves,so the money multiplier will fall.
• B)fewer reserves,so the money multiplier will rise.
• C)more reserves,so the money multiplier will fall.
• D)more reserves,so the money multiplier will rise.

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Definitions:

Circulatory System

The body's system responsible for the transport of blood, nutrients, waste products, and other substances, consisting of the heart, blood vessels, and blood.

Algae

A diverse group of photosynthetic organisms, mostly aquatic, that include seaweeds and many single-celled forms, contributing significantly to oxygen production and biogeochemical cycles.

Evolutionary History

The branch of biology that studies the origins and changes in the diversity of life over time.

Major Events

Significant occurrences or happenings, especially those that mark a particular period or are of historical importance.