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:

Placenta

An organ connected to the uterine wall and to the fetus by the umbilical cord. The placenta serves as a relay station between mother and fetus for the exchange of nutrients and wastes.

Prenatal Activity

Activities or behaviors exhibited by a fetus in the womb, including movements and responses to different stimuli.

Zygote

The initial cell formed when a new organism is produced by sexual reproduction, resulting from the union of sperm and egg cells.

Second Trimester

The period of pregnancy from the 13th to the 26th week, often marked by a decrease in pregnancy symptoms and the growth of the fetus becoming more evident.