Examples of Fed Actions That Could Decrease Money Supply Are

question 56

Multiple Choice

Examples of Fed actions that could decrease money supply are making open market

• A) purchases,increasing the required reserve ratio,and increasing the discount rate
• B) sales,decreasing the required reserve ratio,and increasing the discount rate
• C) sales,increasing the required reserve ratio,and decreasing the discount rate
• D) sales,increasing the required reserve ratio,and increasing the discount rate
• E) purchases,decreasing the required reserve ratio,and decreasing the discount rate

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Definitions:

Venezuela

A country located in South America, known for its significant oil reserves, diverse environments, and recent political and economic challenges.

Trade-off

The compromise between two conflicting desires or choices, where achieving more of one thing requires giving up something else in return.

Peanuts

Often used informally to refer to a very small or insignificant amount of money.

Cashews

A type of nut known for its rich flavor and health benefits, often used in cooking and snacking.