Which of the Following Would NOT Increase the Supply of Money

question 15

Multiple Choice

Which of the following would NOT increase the supply of money in a fiat money economy?

• A) The Federal Reserve decides to purchase existing Treasury securities.
• B) The Federal Reserve decreases the required reserve ratio.
• C) The Federal Reserve decreases the discount rate.
• D) There is a discovery of gold.
• E) The Federal Reserve decides to link the value of money to water (a commodity).

---

Definitions:

Sandwich Generation

Adults who simultaneously care for their aging parents and their own children, often facing financial and emotional stress.

Single-Born Adults

Adults who were born as an only child and did not grow up with siblings.

Parenting Difficulty

Challenges and obstacles faced by individuals or couples while raising children.

Stepchildren

Stepchildren are children of one's spouse from a previous relationship, creating blended family dynamics.