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Finra Series-7 Exam - Topic 6 Question 58 Discussion

When the Federal Reserve lowers reserve requirements, what is it attempting to do?
A) ease credit
B) raise interest rates
C) counter inflation
D) increase the rediscount rate

Finra Series-7 Exam - Topic 6 Question 58 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 58
Topic #: 6
[All Series-7 Questions]

When the Federal Reserve lowers reserve requirements, what is it attempting to do?

Show Suggested Answer Hide Answer
Suggested Answer: A

ease credit. A lower reserve requirement permits member banks to have more money available for lending, thus ease credit.


by Yoko at Sep 21, 2022, 01:57 AM

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Tonette
10 months ago
But isn’t it risky with inflation concerns?
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Keneth
10 months ago
It’s a classic strategy to boost the economy.
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Lorean
10 months ago
Wait, are we sure this is the right move?
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Carolynn
11 months ago
Totally agree, it’s all about making loans easier!
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Cornell
11 months ago
Lowering reserve requirements definitely eases credit.
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Candida
11 months ago
I definitely recall that lowering reserve requirements increases the money supply, which should ease credit, so I’m leaning towards option A.
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Sylvia
11 months ago
I'm a bit confused; I thought lowering reserve requirements might also relate to countering inflation somehow, but that seems contradictory.
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Annmarie
11 months ago
I remember a practice question about the Fed's tools, and I think easing credit was one of the main reasons for lowering reserve requirements.
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Kanisha
11 months ago
I think lowering reserve requirements is meant to ease credit, but I'm not entirely sure if that's the only goal.
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Shannon
11 months ago
I'm a bit confused by this question. The image doesn't look like a typical SMS code or an app development tool, so I'm leaning towards either QR code or barcode creator. I'll have to carefully examine the details to make the best choice.
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Tayna
11 months ago
Okay, let's see. The question is asking about how some people viewed the idea of flying aircraft. I'm leaning towards "exciting" since that seems like the most positive and forward-looking option, but I'll double-check the other choices just to be sure.
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Tresa
11 months ago
Hmm, I'm a bit unsure about this one. I know models are important for data, but I'm not totally confident that's the right answer. I'll have to think it through a bit more.
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