NAIMMCQ Economics 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 ________.

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 .

Economics

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

Answer: B

NAIMMCQ

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 ________.

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 ________.

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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 .

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 .