Which of the Following Actions Taken by the Central Bank

question 75

Multiple Choice

Which of the following actions taken by the central bank would NOT reduce the country's money supply?

• A) Raise the reserve requirement.
• B) Raise the discount rate.
• C) Sell bonds on the open market.
• D) Reduce the interest rate that the Federal Reserve pays banks on their deposits at the Fed.

---

Definitions:

American Coffee Chain

A retail business model that operates stores across the United States, serving coffee and related products.

Sales Revenue

The gross income earned from the sales of goods or services before removing any expenditures.

Industry Potential

The future growth opportunities and profitability that exist for companies within a particular sector.

Market Share

The percentage of an industry's sales that is earned by a particular company over a specific time period.