Which of the Following Would NOT Decrease the Supply of Money

question 110

Multiple Choice

Which of the following would NOT decrease the supply of money in a fiat money economy?

• A) The Federal Reserve decides to link the value of money to a scarce, rare earth metal.
• B) The Federal Reserve decides to sell existing treasury securities.
• C) The Federal Reserve increases the required reserve ratio.
• D) The Federal Reserve increases the discount rate.
• E) The Federal Reserve decides to link the value of money to water (a commodity).

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Definitions:

Abolitionists

Individuals who advocated for the immediate end of slavery and the emancipation of slaves, especially active in the 19th century US and Britain.

Free Blacks

African Americans who were not enslaved before the abolition of slavery in the United States, living with limited rights in both the North and South.

Southern States

Refers to the states located in the southeastern and south-central United States, historically known for their unique cultural, historical, and economic characteristics.

Family Continuity

Refers to the ways in which families maintain their structure, traditions, and relationships over time, often across generations.