If the Fed Is Concerned About a Possible Recession,it ________

question 113

Multiple Choice

If the Fed is concerned about a possible recession,it ________ the federal funds rate,which ________ the quantity of money and ________ the amount of bank loans.

• A)raises;decreases;decreases
• B)lowers;decreases;decreases
• C)lowers;increases;decreases
• D)raises;increases;increases
• E)lowers;increases;increases

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Definitions:

Foreign Exchange Rate

The rate at which one currency can be swapped for a different currency.

International Customer

A customer residing in a different country than the one where the seller's business operates, often requiring considerations for shipping, customs, and currency exchange.

Fiscal Year

A one-year period used for accounting and financial reporting purposes, which may not align with the calendar year.

Foreign Exchange Gain

Profit arising from fluctuations in exchange rates which increase the value of foreign currency-denominated assets.