Which of the Following Lists Two Things That Both Decrease

question 176

Multiple Choice

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

• A) Lower the discount rate and raise the reserve requirement ratio.
• B) Lower the discount rate and lower the reserve requirement ratio.
• C) Raise the discount rate and raise the reserve requirement ratio.
• D) Raise the discount rate and lower the reserve requirement ratio.

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Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, essentially representing the owner's claim against the company's assets.

Expense

The outflow of resources such as cash and other valuables, incurred in the process of generating revenues.

Supplies

Materials and items used in the operation of a business but not directly tied to a final product or service.

Ending Capital

The total value of an entity’s equity at the end of an accounting period after accounting for income and withdrawals.