Suppose Banks Decide to Hold More Excess Reserves Relative to Deposits.Other

question 66

Multiple Choice

Suppose banks decide to hold more excess reserves relative to deposits.Other things the same,this action will cause the

• A)money supply to fall.To reduce the impact of this the Fed could lower the discount rate.
• B)money supply to fall.To reduce the impact of this the Fed could raise the discount rate.
• C)money supply to rise.To reduce the impact of this the Fed could lower the discount rate.
• D)money supply to rise.To reduce the impact of this the Fed could raise the discount rate.

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Definitions:

Revenue

The sum of money a business earns from selling products or offering services over a specific period.

Payroll Functions

The activities involved in calculating and distributing wages, salaries, and deductions to employees.

Procedures

Established methods or protocols within an organization for conducting operations or tasks to achieve consistency and efficiency.