Suppose Banks Decide to Hold More Excess Reserves Relative to Deposits.Other

question 16

Multiple Choice

Suppose banks decide to hold more excess reserves relative to deposits.Other things the same,this action will cause the

• A)money supply to fall.To reduce the impact of this the Fed could sell Treasury bonds.
• B)money supply to fall.To reduce the impact of this the Fed could buy Treasury bonds.
• C)money supply to rise.To reduce the impact of this the Fed could sell Treasury bonds.
• D)money supply to rise.To reduce the impact of this the Fed could buy Treasury bonds.

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Definitions:

Indirect Leadership

A style of leadership where the leader influences others through indirect means, such as setting a vision, creating an environment conducive to growth, and inspiring via example, rather than direct command and control.

Emailing

A method of exchanging digital messages between people using electronic devices.

Texting

The act of sending written messages through electronic means, specifically via mobile phones.

Rational

Based on clear thought and reason; characterized by the ability to make logical, practical, and effective decisions.