Which of the Following Lists Two Things That Both Decrease

question 2

Multiple Choice

Which of the following lists two things that both decrease the money supply?

• A)make open market purchases and raise the reserve requirement ratio
• B)make open market purchases and lower the reserve requirement ratio
• C)make open market sales and raise the reserve requirement ratio
• D)make open market sales and lower the reserve requirement ratio

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as a yearly rate.

Operating Cash Flow

The cash generated from the normal operations of a business, excluding costs associated with financing or investments.

Statement of Comprehensive Income

The comprehensive income statement is a financial document that encompasses all equity alterations within a period, excluding those caused by owner investments and distributions.

Cash Flow

The entire sum of cash and assets that are equivalent to cash being channeled into and out of a business venue.