Which of the Following Policy Actions by the Fed Would

question 162

Multiple Choice

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

• A) An open market sale of government securities.
• B) An increase in required reserve ratios.
• C) An increase in the discount rate.
• D) An open-market purchase of government securities.

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Definitions:

Endoplasmic Reticulum

A membrane-bound organelle in eukaryotic cells involved in the synthesis, folding, modification, and transport of proteins and lipids.

Ribosomes

Cellular organelles that serve as the site of protein synthesis, translating mRNA into polypeptide chains.

Intracellular Digestion

The breakdown of nutrients within the cytoplasm of a cell as a part of the metabolic process.

Lysosome

Enzyme-filled vesicle that breaks down cellular wastes and debris.