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If the Banking System Has a Large Amount of Reserves,many

Question 121

Multiple Choice

If the banking system has a large amount of reserves,many banks will have excess reserves to lend and the federal funds rate will probably ________;if the level of reserves is low,few banks will have excess reserves to lend and the federal funds rate will probably ________.


A) fall;fall
B) fall;rise
C) rise;fall
D) rise;rise

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