The Fed Increases the Reserve Requirement,but It Wants to Offset

question 93

Multiple Choice

The Fed increases the reserve requirement,but it wants to offset the effects on the money supply.Which of the following should it do?

• A)sell bonds to increase reserves
• B)sell bonds to decrease reserves
• C)buy bonds to increase reserves
• D)buy bonds to decrease reserves

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Definitions:

Delusions

False beliefs held with strong conviction, despite superior evidence to the contrary, often seen in psychiatric disorders.

Hallucinations

Perceptual experiences that occur without an external stimulus, such as seeing, hearing, or feeling something that isn't actually present.

Obsessions

Persistent and intrusive thoughts, images, or urges that cause distress or anxiety, often seen in disorders such as Obsessive-Compulsive Disorder (OCD).

Gathering

The act or process of collecting, bringing together, or assembling information, people, or resources.