Which of the Following Lists Contains Only Actions That Decrease

question 1

Multiple Choice

Which of the following lists contains only actions that decrease the money supply?

• A)raising the bank rate; making open-market purchases
• B)raising the bank rate; making open-market sales
• C)lowering the bank rate; making open-market purchases
• D)lowering the bank rate; making open-market sales

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Definitions:

Installment Account

A credit account where the borrower repays the principal and interest over a set period through scheduled payments.

Line of Credit

A flexible loan arrangement with a financial institution that allows a borrower to draw funds up to a specified limit, repay, and redraw as needed.

Trade Credit

An arrangement where a buyer is allowed to purchase goods or services and pay the supplier at a later date, often used to finance short-term business needs.

Consumer Credit

Types of personal loans extended to consumers for purchasing goods and services, including credit cards and installment loans.