Which of the Following Would Cause a Reduction in M1

question 71

Multiple Choice

Which of the following would cause a reduction in M1?

• A)an increase in the required ratio of reserves to deposits
• B)a reduction in the discount rate
• C)an open market operation where the Fed sells bonds
• D)all of the above
• E) none of the above

---

Definitions:

Menopause

A natural biological process marking the end of a woman's reproductive years, characterized by the cessation of menstrual periods and marked hormonal changes.

Aging Cycle

The natural process of growing older, encompassing physical, mental, and emotional changes over time.

Mood Disorders

A diverse group of psychological conditions characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Alzheimer's Disease

A progressive neurodegenerative disorder characterized by memory loss, cognitive decline, and personality changes.