Which of the Following Represents an Action by the Federal

question 149

Multiple Choice

Which of the following represents an action by the Federal Reserve that is designed to decrease the money supply?

• A) buying government securities in the open market
• B) an increase in the required reserve ratio
• C) an increase in federal spending
• D) a decrease in the discount rate

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Definitions:

Circumference

Circumference is the linear distance around the edge of a circle or roughly circular object.

Inaccurate Readings

Measurements or data received from an instrument or device that do not accurately reflect the true value or condition.

Ventilation

A process involving the movement of air into and out of the lungs, facilitating gas exchange with the internal environment.

Respiration

The process by which living organisms inhale oxygen from the environment and exhale carbon dioxide as a waste product, essential for life.