To decrease the money supply using the reserve requirements, what would the Fed typically do?
A) let each bank get less currency from the Treasury
B) raise the reserve requirement for banks
C) reduce the reserve requirement for banks
D) make each bank voluntarily set its own reserve levels
B
You might also like to view...
Which of the following is an investment institution?
A) The New York Stock Exchange B) Greater Illinois Savings and Loan C) Prudential Insurance Company D) Fidelity Magellan Mutual Fund
Which of the following is false? a. Generally speaking, higher levels of saving will lead to higher levels of investment and capital formation and, therefore, to greater economic growth. b. Economic growth rates tend to be higher in countries where the government enforces property rights
c. Investment alone does not guarantee economic growth, which hinges importantly on the quality and the type of investment as well. d. None of the above are false; all are true.
Suppose the Consumer Price Index (CPI) increased by 5 percent over each of the last 5 years while the GDP price index increased by 12 percent annually. Which of the following reasons could explain this difference?
a. Police unions across the country agreed to substantial salary cuts. b. Import good prices increased relative to domestic good prices. c. The price of used automobiles increased substantially relative to the prices of other goods. d. The price of fighter planes dropped due to increased competition in the aerospace industry. e. The price of investment goods purchased by businesses increased substantially relative to the prices of all other goods.
Over a given period of time, if imports are greater than exports, the result is
A. A trade deficit. B. An embargo. C. A trade surplus. D. A trade war.