Which of the Following Actions by the Fed Would Increase

question 89

Multiple Choice

Which of the following actions by the Fed would increase the money supply?

• A)Reducing the required reserve ratio.
• B)Selling bonds in the open market.
• C)Increasing the discount rate.
• D)None of these.

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Definitions:

Corporate Creditors

Entities or individuals that have lent money or extended credit to a corporation and have a right to be repaid.

Charter

A formal document issued by a sovereign or state outlining the rights, privileges, or authority granted to an individual, corporation, or city.

Authorized

Authorized refers to having official permission or approval for actions, operations, or status within legal or organizational frameworks.

Liquidation Preference

A term in a contract that stipulates the order in which shareholders are paid out in the event of a liquidation or exit.