If the Fed Wanted to Reduce the Federal Funds Interest

question 135

Multiple Choice

If the Fed wanted to reduce the federal funds interest rate, it might:​

• A)​decrease the interest rate it pays on bank reserves.
• B)​decrease the required reserve ratio.
• C)​buy government securities.
• D)​Do any of the above.

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Definitions:

Human Behavior

encompasses the wide range of behaviors exhibited by humans and is influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and genetics.

Extinction

In behavior psychology, the process where a conditioned response decreases in frequency and eventually disappears when the reinforcement is withdrawn.

Punishment

A consequence given in response to an action or behavior that is deemed unacceptable, with the intent to discourage such behavior in the future.

Determined Behavior

Behavior that is purposeful and focused on achieving specific goals.