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:

Epigenetic Marks

Chemical modifications to DNA and histone proteins that affect gene expression without altering the DNA sequence itself.

Smoking

The act of inhaling and exhaling the smoke of tobacco or other substances, often associated with health risks.

Rooting

A reflex in infants that prompts them to turn their head toward anything that strokes their cheek or mouth, aiding in breastfeeding.

Cheek

The fleshy part of either side of the face below the eyes and between the nose and ear.