Examlex
An increase in the real interest rate results in which of the following?
Required Reserves
The minimum amount of funds that a bank must hold in reserve against deposit liabilities, as mandated by central banking authorities.
Open Market Sale
The selling of government bonds to the public or banks by the central bank to control the money supply.
Discount Rate
The interest rate charged by central banks on loans offered to commercial banks or the rate used to discount future cash flows to present value.
Required Reserve Ratios
These are central bank regulations set on the minimum amount of reserves that commercial banks must hold against deposits.
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