The Most Common Method Employed by the Fed to Increase

question 114

Multiple Choice

The most common method employed by the Fed to increase the money supply is the

• A)sale of U.S.government bonds.
• B)purchase of U.S.government bonds.
• C)sale of gold.
• D)increase of the federal debt ceiling.

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Definitions:

Spending Priorities

The allocation decisions made by an individual, organization, or government regarding where to allocate available financial resources among various competing needs or interests.

Deferred Costs

Expenses that are incurred for an asset that will not be completely consumed in the current period but rather recognized over time.

Unfunded Liabilities

Obligations or debts that do not have sufficient funds set aside to pay them.

Immediate Benefits

Advantages or positive effects that can be realized quickly after implementing a decision or action.