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.

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Definitions:

X-Shaped Structure

An entity characterized by its cross or X-like configuration, often found in anatomy, architecture, and various branches of science and engineering.

Posterior Chamber

A fluid-filled space behind the iris but in front of the lens in the eye, playing a role in the eye's focusing mechanism.

Lens

A piece of transparent material, typically glass or plastic, shaped to focus or redirect light rays, used in glasses, cameras, and other optical devices.

Retina

The light-sensitive layer of tissue at the back of the eye that converts light images into electrical signals sent to the brain.