When the Federal Reserve System Wants to Increase the Money

question 72

Multiple Choice

When the Federal Reserve System wants to increase the money supply, which of the following actions would the Fed choose?

• A) It purchases U.S. government securities.
• B) It increases the discount rate.
• C) It increases the required reserve ratio.
• D) It sells bonds on the open market.

---

Definitions:

Eating Disorder

A mental disorder defined by abnormal eating habits that negatively affect a person's physical or mental health, such as anorexia or bulimia.

Body Dysmorphic Disorder

A mental health disorder characterized by obsessive thinking about a perceived flaw in appearance, even if the flaw is minor or not observable to others.

Weight Loss

The reduction of the total body mass, due to a mean loss of fluid, body fat or adipose tissue, and/or lean mass.

Aerobic Exercise

Physical exercise of low to high intensity that depends primarily on the aerobic energy-generating process, such as running or cycling.