Which of the Following Is Associated with a Contractionary Monetary

question 275

Multiple Choice

Which of the following is associated with a contractionary monetary policy?

• A) lowering the differential between the discount rate and the federal funds rate
• B) selling bonds
• C) lowering the required reserve ratio
• D) raising bond prices

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Definitions:

Probate

The legal process of administering the estate of a deceased person, resolving all claims, and distributing the deceased person's property under a will.

Testamentary Trust

A trust that is created according to the instructions in a person’s will to manage assets for beneficiaries after the person's death.

Charitable Trust

A trust created to benefit a particular charity or the public in general, typically for educational, religious, scientific, or other charitable purposes.

Cy Pres Trust

A legal principle allowing courts to modify charitable trusts or gifts to closely match the donor's intent if the original purpose becomes impracticable or impossible to achieve.