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.

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Definitions:

Intentional Torts

Wrongful acts committed with the intention of causing harm to others, which can include assault, battery, and defamation.

Principal

The primary party involved in a transaction, agreement, or legal relationship, who has authorized agents to act on their behalf.

Agent

A person authorized to act on behalf of another person or entity, known as the principal, in business dealings or other matters.

Liable

Liable describes the state of being legally responsible for something, especially in terms of owing compensation or facing legal consequences for one's actions or inactions.