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:

Merit Raises

An increase in salary based on an employee's performance, often determined through evaluations, recognising their contributions and achievements.

Performance Declines

A decrease in the efficiency, productivity, or output quality of an individual or organization over time.

Incentive Plans

Compensation strategies designed to motivate employees by linking a portion of their pay to individual or organizational performance.

Labour Costs

The total expenditure by businesses on employee compensation, including wages, salaries, and benefits.