When the Fed Wants to Decrease the Money Supply, It

question 133

Multiple Choice

When the Fed wants to decrease the money supply, it will

• A) buy bonds.
• B) lower the federal funds rate.
• C) sell bonds.
• D) lower taxes.

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Definitions:

Cash Receipts

Monies received by a business, recorded during the period they are received, including cash sales and collections from customers.

Projected Sales

Future sales estimates based on historical data, market analysis, and other predictive techniques.

Accounts Receivable

The amount of money owed to a company by its customers for goods or services sold on credit.

Budgeted Sales

Forecasted revenue a company expects to generate from selling its products or services in a specific period.