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    Financial Markets and Institutions Study Set 1
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    Exam 10: Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
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    If the Fed Increases Reserve Requirements,the Demand for Reserves ________
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If the Fed Increases Reserve Requirements,the Demand for Reserves ________

Question 93

Question 93

Multiple Choice

If the Fed increases reserve requirements,the demand for reserves ________ and the equilibrium federal funds rate ________.


A) increases; drops
B) decreases; rises
C) decreases; drops
D) increases; rises

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