If the Federal Reserve Wants to Increase the Availability of Money

question 45

Multiple Choice

If the Federal Reserve wants to increase the availability of money and credit, it can:

• A) lower the discount rate.
• B) raise the reserve requirements.
• C) sell U.S. government bonds to the public.
• D) encourage banks to increase their prime lending rate.

---

Definitions:

Major Historical Events

Significant occurrences in history that have had a profound impact on societies and cultures across time.

Organic Amnesia

Loss of memory caused by brain injury resulting from disease, drugs, accidents (blows to head), or surgery.

Anterograde Amnesia

A condition characterized by the inability to form new memories after the onset of the disorder, while memories from before the onset remain intact.

Retrograde Amnesia

The loss of memory for events that occurred before a traumatic event or the onset of the amnesia.