The Fed Is Considering Increasing the Amount of Money That

Multiple Choice

The Fed is considering increasing the amount of money that banks are required to keep in their vault. This amount is known as the ________ and an increase would most likely cause ________ to interest rates.

A) discount rate; no change
B) indenture term; a decrease
C) reserve requirement; an increase
D) reserve requirement; a decrease
E) discount rate; an increase