If the Fed Doubled the Money Supply in One Day

question 52

Multiple Choice

If the Fed doubled the money supply in one day, the amount of goods and services traded would:

• A) not change.
• B) increase.
• C) decrease.
• D) fall to zero.

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Definitions:

Small Time Deposits

Bank deposits that have a fixed term or maturity date, typically with smaller deposit amounts and shorter durations.

Demand Deposits

Bank accounts that allow the account holder to withdraw funds without prior notification, such as checking accounts.

Shift Register

A shift register is a type of digital memory circuit used to store and shift data in a series of registers, where each clock pulse moves the data contained in the registers one position to the left or right.

Register

A memory word or area for the temporary storage of data used within mathematical, logical, or transfer functions.