Which of the Following Will Tend to Decrease the Excess

question 76

Multiple Choice

Which of the following will tend to decrease the excess reserves of the commercial banking system?

• A)​The central bank buys bonds from the public.
• B)​The central bank sells bonds to a commercial bank.
• C)​The central bank reduces its discount rate.
• D)​The central bank decreases the required reserve ratio.

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Definitions:

Low Productivity

A situation where there is an inefficient use of resources, resulting in less output per unit of input, often affecting economic growth and competitiveness.

Adequate Infrastructure

Essential facilities and systems serving a country, city, or area, including transportation and communication systems, power plants, and schools, that are sufficient to support economic activities and improve quality of life.

Public Sector

The sector of an economy that is controlled or operated by the government, including services such as education, policing, and healthcare.

Trade Barriers

Regulations or policies implemented by a country to restrict or control international trade and protect domestic industries.