Which of the Following Is an Action That the Fed

question 40

Multiple Choice

Which of the following is an action that the Fed uses to increase or decrease the money supply? ​

• A)buying or selling Treasury securities in the secondary market
• B)adjusting the tax rate imposed on income earned on Treasury securities
• C)adjusting the coupon rate on Treasury bonds
• D)selling Treasury securities in the primary market

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Definitions:

Custodial Services

Services related to the cleaning and maintenance of buildings and facilities.

Square Feet

A unit of area measurement equivalent to a square that measures one foot on each side.

Direct Method

A way of preparing a cash flow statement where actual cash flow information from the company’s operations is used, directly showing cash receipts and cash disbursements.

Machine Hours

A measure of production output based on the amount of time machinery is operated.