Which of the Following Is an Appropriate Policy for the Fed

question 123

Multiple Choice

Which of the following is an appropriate policy for the Fed to pursue if it wants to increase the money supply?

• A)raise the reserve requirement
• B)raise the discount rate
• C)buy U.S.Treasury bills
• D)lower taxes

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Definitions:

Liability

A financial obligation or debt owed by a company to third parties, to be settled through the transfer of assets, provision of services, or other economic benefits.

Low-Quality Earnings

Earnings reported by a company that may not be repeatable, sustainable, or indicative of its operational health, often inflated by accounting gimmicks or one-time items.

Earnings Items

The components that make up the net income of a company, including revenue, expenses, gains, and losses.

Company's Earnings

Company's earnings refer to the profit a company makes after deducting all costs and expenses from its total revenue.