Which Tool Does the Fed Use Most Commonly to Increase

question 1

Multiple Choice

Which tool does the Fed use most commonly to increase the money supply?

• A) increase discount lending
• B) raise the reserve requirement
• C) changing deposit insurance requirements
• D) none of the above

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Definitions:

Internet

A global network of interconnected computers and servers allowing for the exchange of data, communication, and resources.

Participant Modeling

A therapeutic technique in which a therapist demonstrates a desired behavior to a client, who is then encouraged to imitate this behavior.

Effectiveness

The degree to which something is successful in producing a desired result or outcome.

Psychotherapy

A method of treating mental health problems by talking with a psychiatrist, psychologist, or another mental health provider.