14.
If the Federal Reserve Board raises the discount rate to banking institutions, _____.
the interest rates decrease
the money supply in the economy increases
the interest rates remain unaffected
economic activity remains the same
economic activity slows down
Bottom of Form
15.
If the Federal Reserve Board increases reserve requirements for banking institutions, _____.
banks make fewer loans
the money supply in the economy increases
banks have to pay a lower interest rate on loans taken from the Fed
banks have to pay a higher interest rate on loans taken from the Fed
economic activity increases
16.
If the Federal Reserve Board decreases reserve requirements for banking institutions, _____.
banks make fewer loans
the money supply in the economy increases
economic activity decreases
banks have to pay a higher interest rate on loans taken from the Fed
banks have to pay a lower interest rate on loans taken from the Fed
14.
If the Federal Reserve Board raises the discount rate to banking institutions, _____.
the interest rates decrease
the money supply in the economy increases
the interest rates remain unaffected
economic activity remains the same
economic activity slows down
Bottom of Form
15.
If the Federal Reserve Board increases reserve requirements for banking institutions, _____.
banks make fewer loans
the money supply in the economy increases
banks have to pay a lower interest rate on loans taken from the Fed
banks have to pay a higher interest rate on loans taken from the Fed
economic activity increases
16.
If the Federal Reserve Board decreases reserve requirements for banking institutions, _____.
banks make fewer loans
the money supply in the economy increases
economic activity decreases
banks have to pay a higher interest rate on loans taken from the Fed
banks have to pay a lower interest rate on loans taken from the Fed
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