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:

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Forced to act or think in a certain way through pressure or threats.

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A psychological state in which an individual's constant self-assessment leads to negative feelings and a decrease in motivation or self-worth.

Feedback

Information given to an individual or group about their performance or behavior with the intention of improving future actions.

Scientific Management

A theory of management that analyzes and synthesizes workflows with the objective of improving labor productivity and economic efficiency.