If the Federal Funds Rate Were Above the Level the Federal

question 44

Multiple Choice

If the federal funds rate were above the level the Federal Reserve had targeted,the Fed could move the rate back towards its target by

• A)buying bonds.This buying would reduce reserves.
• B)buying bonds.This buying would increase reserves.
• C)selling bonds.This selling would reduce reserves.
• D)selling bonds.This selling would increase reserves.

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Definitions:

Direct Approach

A communication style that is straightforward and unambiguous.

Routine Requests

Regular or standard inquiries or demands made in a business or professional context.

Profession Tone

A style of communication that is formal, courteous, and appropriate for a professional setting, reflecting respect and competence.

Buffer

A neutral or positive statement used at the beginning of a message to cushion the impact of negative news or feedback.