In Addition to Lowering the Discount Rate to Increase the Money

question 113

Multiple Choice

In addition to lowering the discount rate to increase the money supply, the Fed could also

• A) purchase bonds on the open market and raise reserve requirements.
• B) sell bonds on the open market and raise reserve requirements.
• C) purchase bonds on the open market and lower reserve requirements.
• D) sell bonds on the open market and lower reserve requirements.

---

Definitions:

Bilateral Tolerance

A type of tolerance that allows a dimension to vary equally in both positive and negative directions from the nominal value.

Plus

A mathematical symbol (+) used to indicate addition or a positive value.

Minus

In engineering and mathematics, "minus" indicates a subtraction operation or a negative value in measurements and tolerances.

Abbreviation

The act of shortening something by omitting letters or using initials.