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 demand of reserves, ________ the federal funds rate, everything else

held constant. A) decreases; lowering
B) increases; lowering
C) increases; raising
D) decreases; raising

A

Economics

You might also like to view...

Firms that are designated as systemically important financial institutions (SIFIs) are subject to all of the following additional Federal Reserve regulations EXCEPT

A) higher capital standards. B) stricter liquidity requirements. C) providing a plan for orderly liquidation if necessary. D) interest rate ceilings on time deposits.

Economics

The difference between a business plan and a scenario plan is:

a. A scenario plan is a one-to-three year planning document, but the business plan is a 10-to-20 year planning document. b. Really, there is no difference c. A scenario plan is like a capital budgeting plan. In short, it is for one scenario. But a business plan is for three to five years. d. A scenario plan is a long-term planning document (normally 10 to 20 years), and a business plan is a three-to-five year plan. e. None of the above.

Economics