If the Fed Wants to Increase the Money Supply, It

question 235

Multiple Choice

If the Fed wants to increase the money supply, it can:

• A)buy bonds.
• B)sell bonds.
• C)pass a law that interest rates rise.
• D)pass a law that interest rates fall.

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Definitions:

Fixed Assets

Assets of a long-lasting nature involved in business operations, which are not anticipated to be expended or turned into cash quickly.

Current Assets

Items of value that are projected to be turned into cash, sold off, or consumed either within a year or throughout the length of the business's normal operational cycle, whichever timeframe is greater.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating its ability to meet short-term obligations.

Office Equipment

Refers to the assets purchased for use in the operation of a business, including computers, printers, and furniture.