Which of the Following Actions by the Fed Would Increase

question 210

Multiple Choice

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

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

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Definitions:

General Cash Offering

A public sale of securities to all investors, typically to raise capital for a corporation.

Securities Offered

Financial instruments such as stocks, bonds, or options that are made available for sale to investors.

Direct Cash

Cash transactions that involve the immediate transfer of money for goods or services, without any delay in payment.

IPO Underpricing

The phenomenon where shares of a company are sold at a lower price during the initial public offering than the price at which they subsequently trade in the open market.