Which of the Following Policy Actions by the Federal Reserve

question 113

Multiple Choice

Which of the following policy actions by the Federal Reserve is likely to increase the money supply?

• A)Sell government bonds, decrease reserve requirements, decrease the discount rate.
• B)Sell government bonds, increase reserve requirements, increase the discount rate.
• C)Buy government bonds, increase reserve requirements, decrease the discount rate.
• D)Buy government bonds, decrease reserve requirements, decrease the discount rate.

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Definitions:

Simple Design

An organizational structure characterized by minimal complexity, few layers of hierarchy, and straightforward decision-making processes.

Vertical Specialization

Refers to the degree to which tasks in an organization are subdivided into separate jobs.

Central Manager

A key managerial position responsible for overseeing the central or core operations within an organization or department.

Committees

Groups of people appointed for a specific function, typically consisting of members of a larger group.