If the Federal Reserve Conducts Open Market ________,The Money Supply

question 2

Multiple Choice

If the Federal Reserve conducts open market ________,the money supply ________,shifting the LM curve to the left,everything else held constant.

• A)purchases;decreases
• B)sales;decreases
• C)purchases;increases
• D)sales;increases

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Definitions:

Cash Over and Short

An account that reports the discrepancies between the physical count of cash and the recorded amounts in a business's financial records.

Internal Control Procedures

Systems and policies put in place by a company to ensure the accuracy and integrity of financial and accounting information, prevent fraud, and comply with laws.

Cash Receipts

Money received by a business during a set accounting period, including revenue from sales, interest, dividends, and other cash inflows.

Voucher System

A control mechanism in accounting to ensure all business transactions are properly authorized and recorded.