If the Fed Wanted to Use All Three of Its

question 228

Multiple Choice

If the Fed wanted to use all three of its primary tools to increase the money supply, it should

• A) raise the reserve requirement, lower the discount rate, and conduct an open market sale.
• B) raise the reserve requirement, raise the discount rate, and conduct an open market sale.
• C) lower the reserve requirement, raise the discount rate, and conduct an open market purchase.
• D) lower the reserve requirement, lower the discount rate, and conduct an open market purchase.

---

Definitions:

Skill Memories

Long-term memories related to the performance of particular types of action, often acquired through repetition and practice.

Cerebellum

Hindbrain region that coordinates voluntary movements.

Motor Activity

Physical actions and movements generated by the muscles and nervous system of an organism.

Motor Skills

Abilities required to perform movements and tasks, involving the coordination of muscles and the nervous system.