Which of the Following Is Not a Consequence of the Fed

question 10

Multiple Choice

Which of the following is not a consequence of the Fed changing the reserve requirement?

• A)Changes in the ratio are easily incorporated into banks' routine management.
• B)Decreasing the ratio will increase excess reserves.
• C)Increasing the ratio will decrease the amount of reserves banks have to loan.
• D)Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.

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Definitions:

Measurement

The process of obtaining a quantitative representation of traits, quantities, or phenomena to allow for analysis or comparison.

Outcome Objectives

The specific, measurable results or achievements that a program or intervention aims to accomplish.

Process Evaluation

An assessment of the implementation process of a program or intervention, examining its fidelity and the way it is delivered.

Program Implementation

The process of putting a planned program into action or practice in a real-world setting.