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:

Common Average

The arithmetic mean or simple average of a set of values, calculated by summing them up and dividing by the number of values.

Variance

A statistical measure that represents the dispersion or spread of a dataset relative to its mean, indicating how far the data points are from the mean.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, aiming to provide an accurate description of the entire data set.

Least Precise

Describes the measurement or estimation with the highest degree of uncertainty or the lowest level of detail.