When the Federal Reserve Seeks to Contract the Money Supply

question 4

Multiple Choice

When the Federal Reserve seeks to contract the money supply, it may

• A)sell securities and raise the targeted federal funds rate
• B)sell securities and lower the targeted federal funds rate
• C)buy securities and raise the targeted federal funds rate
• D)buy securities and lower the targeted federal funds rate

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Definitions:

Quaternary Storage

A type of data storage system designed to store large volumes of data using optical or magnetic technology, often for archival purposes.

SSDs

Solid State Drives, a type of non-volatile storage media that uses flash memory to store data, offering faster data access speeds and greater reliability than traditional hard disk drives.

Cost

The amount of money required to purchase, operate, or maintain a product or service or the effort involved in achieving something.

ROM

Read-Only Memory, a type of non-volatile storage media that is programmed with data that cannot be modified, or that can only be modified slowly or with difficulty.