Which of the Following Is an Example of a Federal

question 130

Multiple Choice

Which of the following is an example of a Federal Reserve action that increases the money supply?

• A) an increase in the required reserve ratio
• B) an increase in the federal funds rate
• C) the Fed selling government bonds in the open market
• D) a decrease in the discount rate

---

Definitions:

Negotiable

Capable of being transferred or converted into goods, services, or money under terms agreeable to the involved parties.

Payable To Order

A clause on a financial document that specifies who can receive the payment, allowing the initial payee to endorse it over to another party.

Payable To Bearer

Payable to bearer describes a financial instrument, such as a check or bond, that is payable to the holder or presenter of the document, rather than a specific individual.

Issued

Pertains to the official distribution or release of something, such as a document, currency, or product.