Which of the Following Would Likely Increase the Money Supply

question 197

Multiple Choice

Which of the following would likely increase the money supply?

• A) the purchase of government securities by one bank from another bank
• B) an increase in the required reserve ratio
• C) an increase in the reserves of a commercial bank
• D) an increase in the discount rate
• E) the sale of government securities by a bank to the Fed

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Definitions:

Cognitive Development

The study of how thinking, problem solving, and intelligence evolve from childhood through adulthood.

Psychosocial Development

Erikson's theory that individuals pass through eight developmental stages, each characterized by a different psychological crisis.

Initiative Versus Guilt

Initiative versus guilt is a stage in Erik Erikson's theory of psychosocial development, where children aged 3 to 5 years learn to initiate activities and interact with others or experience guilt for their actions and thoughts.

Erikson

A reference to Erik Erikson, a developmental psychologist known for his theory on the psychological stages of human development.