Which of the Following Fed Actions Increases the Money Supply

question 170

Multiple Choice

Which of the following Fed actions increases the money supply?

• A)Decreasing the amount of loans made to commercial banks
• B)Buying government securities in the open market
• C)Selling government securities in the open market
• D)Increasing reserve requirements

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Definitions:

Explicit Memory

The conscious, intentional recollection of factual information, previous experiences, and concepts.

Effortful Processing

The active memorization and learning of information through deliberate attention and effort.

Implicit Memory

A type of long-term memory that does not require conscious thought and enables us to perform tasks without deliberate effort.

Right Hippocampus

A region in the right hemisphere of the brain associated with the processing of spatial navigation and memory formation.