Regarding the reserve requirements

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Reference no: EM131392106

1. If you establish the value of goods and services necessary to provide a minimum standard of living below which people are poor, you have come up with an income test that is called a(n):

means-tested test.

absolute income test.

nominal income test.

2. Which of the following is true regarding the reserve requirements?

The Fed changes them frequently because they are a power monetary policy tool.

The Fed changes them frequently because doing so simplifies banking operations.

The Fed does not change them much at all because doing so would make banking operations difficult.

Reference no: EM131392106

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