In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement ________ the ________ curve of reserves and causes the federal funds interest rate
to fall, everything else held constant. A) decreases; demand
B) increases; demand
C) increases; supply
D) decreases; supply
A
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How do changes in interest rates affect exchange rates?
What will be an ideal response?
During last year the price of regular unleaded gasoline in Oakland, California increased 11.0 percent. If the price elasticity of demand for gasoline was 0.13, the price hike means that the quantity demanded decreased by
A) 1.43 percent. B) 8.46 percent. C) 0.16 percent. D) 4.31 percent. E) 6.46 percent.
The concept of holding reserves, such as gold, that are less than the value of the total deposits
A. is known as non-credit banking. B. is known as fractional reserve banking. C. has been illegal since the passage of the Financial Services Modernization Act of 1999. D. None of these are correct.
List the four main factors of production
What will be an ideal response?