Which of the Following Explains Why the Money Supply Is

question 90

Multiple Choice

Which of the following explains why the money supply is not completely controlled by the Federal Reserve?

• A) The actions of private individuals and banks can increase or decrease the money supply via the money multiplier.
• B) The president can issue an executive order that can increase or decrease the money supply.
• C) The Treasury has say over when the Federal Reserve can increase or decrease the money supply.
• D) The actions of banks, which determine reserve requirements, can increase or decrease the money supply via the spending multiplier.
• E) Congress has authority to veto any monetary policy enacted by the Federal Reserve.

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Definitions:

Cellular Respiration

This is a metabolic process in cells where chemical energy from oxygen molecules and nutrients is converted into adenosine triphosphate (ATP), and waste products are released.

Mitochondrion

The singular form of mitochondria, referring to a single organelle within eukaryotic cells that generates most of the cell's supply of ATP.

Secretions

Biological substances produced and released by cells or glands, often serving specific functions in the body.

Gastric Glands

Glands located in the lining of the stomach that secrete gastric juice, which aids in digestion.