Which of the Following Is Not a Tool for Controlling

question 89

Multiple Choice

Which of the following is not a tool for controlling the money supply?

• A) Buying government bonds
• B) Selling government bonds
• C) Changing tax rates
• D) Changing the required reserve ratio
• E) Changing the discount rate.

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Definitions:

Debit Balances

Financial account balances resulting from total debits exceeding total credits, common in asset and expense accounts.

Credit Balances

Amounts of money in financial accounts that indicates the institution owes the account holder; in accounting, it can indicate a surplus in a particular account.

Ledger

A comprehensive collection of all accounts and transactions for a company, used in the double-entry bookkeeping system.

Overpayment Error

An overpayment error occurs when more money is paid than is actually owed, requiring adjustment or refund.