When the Fed Increases the Interest Rate Paid on Reserves

question 86

Multiple Choice

When the Fed increases the interest rate paid on reserves, it:

• A) increases the reserve-deposit ratio (rr).
• B) decreases the reserve-deposit ratio (rr).
• C) increases the monetary base (B).
• D) decreases the monetary base (B).

---

Definitions:

Interpersonal Relationships

Relationships established between two or more individuals based on social interactions, characterized by mutual influence and emotional connection.

Patriarchy

A social system where males hold primary power, predominate in roles of political leadership, moral authority, social privilege, and control of property.

Cultural Norms

The shared expectations and rules that guide the behavior of people within social groups.

The Vertical Mosaic

A concept describing the structured social stratification and ethnic hierarchy in Canadian society.