If the Fed Wanted to Use All Three of Its

question 1

Multiple Choice

If the Fed wanted to use all three of its major monetary control tools to decrease the money supply, it would:

• A) buy bonds, reduce the discount rate, and reduce reserve requirements.
• B) sell bonds, reduce the discount rate, and reduce reserve requirements.
• C) sell bonds, increase the discount rate, and increase reserve requirements.
• D) buy bonds, increase the discount rate, and increase reserve requirements.

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Definitions:

Disease Transmission

The process by which infectious diseases spread from one individual to another, through direct contact, vectors, or environmental means.

Inhalation

The act of breathing in; the intake of air or other substances into the lungs.

Ingestion

The process of taking food, drink, or another substance into the body through the mouth.

Reasonable Accommodations

Adjustments or modifications provided to enable people with disabilities to participate fully in an activity or place of employment.