Which One of the Following Policies Might the Fed Initiate

question 181

Multiple Choice

Which one of the following policies might the Fed initiate if it wanted to increase the money supply?

• A)sell government securities 
• B)increase the reserve requirement 
• C)increase the discount rate 
• D)decrease the reserve requirement

---

Definitions:

Take-Home Pay

The net amount of income that an employee receives after deductions such as taxes and social security contributions have been removed.

Salaries Payable

A current liability account that records the amounts owed to employees for services rendered but not yet paid.

Salaries Expense

The expense reported on the income statement representing the total amount paid to employees for services rendered during a specific period.

Payroll Register

A record that summarizes wages, deductions, and net pay for all employees for each pay period.