To Offset the Effect of Households and Firms Deciding to Hold

question 38

Multiple Choice

To offset the effect of households and firms deciding to hold less of their money in checking account deposits and more in currency,the Federal Reserve could

• A)raise the required reserve ratio.
• B)buy Treasury securities.
• C)raise the discount rate.
• D)lower bank taxes.

---

Definitions:

Anxiety Disorders

Anxiety disorders are a group of mental health disorders characterized by feelings of anxiety and fear that are strong enough to interfere with daily activities.

Global Assessment

An evaluative process that considers multiple aspects or dimensions of a subject, such as an individual's health, an organization's performance, or the state of the environment, to form a comprehensive overview.

Functioning

The capacity or ability of something or someone to operate or perform effectively.