Which of the Following Direct Actions Could the Fed Take

question 20

Multiple Choice

Which of the following direct actions could the Fed take to attempt to decrease the money supply?

• A) Purchase U.S. government bonds
• B) Decrease the federal funds rate
• C) Decrease the reserve requirement
• D) Coordinated intervention
• E) Increase the discount rate

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Definitions:

Reversed

Changed to the opposite direction, order, position, or condition, often referring to financial transactions or entries.

Adjusting Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Reversing Entries

are journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries from the end of the previous period.

Reversing Entries

Journal entries that are made at the beginning of an accounting period to reverse or cancel out adjusting journal entries made at the end of the previous accounting period.