Which of the Following Explains Why the Money Supply Is

question 40

Multiple Choice

Which of the following explains why the money supply is NOT completely controlled by the Federal Reserve?

• A) The actions of private individuals and banks can increase or decrease the money supply via the money multiplier.
• B) The president can issue an executive order that can increase or decrease the money supply.
• C) The treasury has say over when the Federal Reserve can increase or decrease the money supply.
• D) The actions of private individuals and banks can increase or decrease the money supply via the spending multiplier.
• E) Congress has authority to veto any monetary policy enacted by the Federal Reserve.

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Definitions:

Socioeconomic Status

A social standing or class of an individual or group often measured by education, income, and occupation.

Longevity

The length of time an individual lives, often used in the context of life span extension and quality of life.

Functional Age

Measure of a person’s ability to function effectively in his or her physical and social environment in comparison with others of the same chronological age.

Geriatrics

The branch of medicine focusing on the health, care, and diseases of older adults and the challenges associated with aging.