When the Federal Reserve Raises the Target Federal Funds Rate

question 170

Multiple Choice

When the Federal Reserve raises the target Federal funds rate, it:

• A) Sells government securities to increase the excess reserves available for overnight loan
• B) Buys government securities to increase the excess reserves available for overnight loan
• C) Sells government securities to decrease the excess reserves available for overnight loan
• D) Buys government securities to decrease the excess reserves available for overnight loan

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Definitions:

Filipino

Pertaining to the people, culture, or country of the Philippines, a Southeast Asian nation comprised of more than 7,000 islands.

Ethnocentric Thinking

The belief in the superiority of one's own ethnic group, which can lead to viewing other cultures from the perspective of one's own.

Hawaiian Culture

The indigenous cultural practices, beliefs, traditions, and languages native to Hawaii and its people.

Institutionalized Racism

Systems and structures that impose racial discrimination or disadvantage based on race, enacted and perpetuated by societal institutions.