If the Central Bank Wants to Reduce Money Supply Through

question 83

Multiple Choice

If the central bank wants to reduce money supply through open market operations, it would _____.

• A) increase the equilibrium interest rate
• B) increase the minimum reserve requirements for banks
• C) sell government bonds
• D) increase margin requirements on loans

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Definitions:

Styloid Process

The styloid process is a slender, pointed projection of bone that extends from the temporal bone of the skull, where it serves as a point of attachment for muscles associated with the tongue and throat.

Radius

One of the two main bones of the forearm, situated on the lateral side (thumb side) of the arm and plays a crucial role in wrist movement.

Ulna

A long bone in the forearm that runs from the elbow to the smallest finger, forming the elbow joint with the humerus.

Metacarpal

The bones located in the hand between the wrist and the fingers.