Which of the Following Lists Two Things That Both Increase

question 141

Multiple Choice

Which of the following lists two things that both increase the money supply?

• A) The Fed buys bonds and lowers the discount rate.
• B) The Fed buys bonds and raises the discount rate.
• C) The Fed sells bonds and lowers the discount rate.
• D) The Fed sells bonds and raises the discount rate.

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Definitions:

Capital Account Balance

This term refers to the total amount of funds contributed by investors or owners plus retained earnings in a company's or individual's financial account.

Ownership Interest

An individual's or entity's legal rights and claims to an asset or property, typically reflecting the extent of ownership and stake.

Partnership Capital

The total amount of assets or equity contributed by all partners in a partnership.

Capital Balances

Capital balances reflect the amount of capital that owners or shareholders have invested in a company, encompassing both contributed capital and retained earnings.