If the Federal Reserve Made the Decision to Increase the Money

question 177

Multiple Choice

If the Federal Reserve made the decision to increase the money supply in the United States,this would lead to:

• A) an increase in the demand for U.S.dollars.
• B) a decrease in the demand for U.S.dollars.
• C) an appreciation of the U.S.dollar relative to other currencies.
• D) a depreciation of the U.S.dollar relative to other currencies.

---

Definitions:

Business Firm

An organization engaged in commercial, industrial, or professional activities, aiming to earn profits by providing goods or services.

Usury Law

Legislation that sets maximum interest rates that can be charged on loans, to prevent excessive interest rates or usury.

Efficiency Of Investment

The degree to which invested resources are used optimally to achieve desired outcomes without waste.

Beneficiary

An individual or entity entitled to receive benefits or profits from a will, trust, insurance policy, or other arrangements designed to distribute assets.