Which of the Following Explains Why the Money Supply Is

question 1

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.

Understand the impact of transactions on total assets and total liabilities.

Recognize the definition and types of accounting periods, including a calendar and fiscal year.

Identify proper journal entries for different types of transactions, including investments, withdrawals, and purchases.

Distinguish between the components of the general journal and their purposes.

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Definitions:

Share Capital

The funds raised by a company through the issuance of shares, representing the amount invested by shareholders.

Exchange of Shares

A transaction where shares of one company are exchanged for shares of another company, often occurring in mergers and acquisitions.

Business Combinations

The process of uniting two or more companies into a single corporate entity, often involving acquisitions or mergers.

IFRS 3

International Financial Reporting Standard that deals with the accounting for business combinations, guiding how companies should reflect mergers and acquisitions.