"The Bank of Israel lowered its benchmark lending rate by half a percentage point, the fourth cut in seven weeks, as the global financial turmoil slows economic growth and inflation expectations ease."
Www)bloomberg.com 11/24/2008
The Bank of Israel's actions ________ bank reserves and have the goal of ________ consumption.

Question

Quizplus · Accepted Answer

The Bank of Israel lowered its benchmark lending rate to increase bank reserves, which in turn will increase lending and stimulate increased consumption. Therefore, the correct answer is C - increase bank reserves and have the goal of increasing consumption.

"The Bank of Israel Lowered Its Benchmark Lending Rate by Half