Which of the Following Fed Actions Would Both Increase the Money

question 259

Multiple Choice

Which of the following Fed actions would both increase the money supply?

• A)buy bonds and raise the reserve requirement
• B)buy bonds and lower the reserve requirement
• C)sell bonds and raise the reserve requirement
• D)sell bonds and lower the reserve requirement

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Definitions:

CICA Handbook

A comprehensive accounting standards guide issued by the Canadian Institute of Chartered Accountants for private sector and not-for-profit organizations.

Encumbrance System

an accounting system used primarily in governmental accounting to record commitments made on future expenditures before they are actually incurred.

Commitments

Obligations that an entity has agreed to fulfill in the future, which can include financial contracts, purchase agreements, or other binding agreements.

Acquisition

The process of acquiring control of another company by purchase of its shares or assets.