Author Question: If the Federal Reserve wanted to increase lending by banks, what could it do to reserve ... (Read 93 times)

bobthebuilder · **on:** Jul 10, 2018

If the Federal Reserve wanted to increase lending by banks, what could it do to reserve requirements?

a. Lower the discount rate on bank reserve requirements.
b. Lower the rate of taxation on bank reserve requirements.
c. Lower the reserve requirements for banks.
d. Increase the discount rate on bank reserve requirements.

Question 2

Which of these statements best describes the influence of adjustments to the discount rate made by the Federal Reserve?

a. They always lead to lower rates of marginal taxes.
b. They can lead to higher unemployment in years of budget deficits.
c. They can spur economic growth by increasing the cost of money for business.
d. They can spur economic growth by increasing the available money supply.