Which of the Following Actions by the Central Bank Would

question 51

Multiple Choice

Which of the following actions by the central bank would NOT increase the money supply?

• A) Lower the discount rate.
• B) Buy bonds on the open market.
• C) Lower the reserve requirement.
• D) Raise the interest rate that banks receive on their deposits at the Federal Reserve.

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Definitions:

Colonization

The process by which a country establishes control over a foreign territory, subjecting it to its rule and often settling it with its own populace, impacting the indigenous culture and society.

Land Ownership

The legal or rightful ownership of land, involving the rights to use, control, and transfer land as property.

John Winthrop

An English Puritan lawyer and one of the leading figures in founding the Massachusetts Bay Colony, the second major settlement in New England following Plymouth Colony.

City Upon a Hill

A metaphor from a sermon by Puritan leader John Winthrop, this term highlights the belief that the American colonies had a special mission to serve as a beacon of purity and morality.