Which of the Following Policy Actions by the Fed Would

question 245

Multiple Choice

Which of the following policy actions by the Fed would cause the money supply to decrease?

• A) An open market purchase of government securities.
• B) A decrease in required reserve ratios.
• C) A decrease in the discount rate.
• D) An open-market sale of government securities.

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Definitions:

Ex-spouses

Individuals who were once married to each other but have since been legally divorced.

Remarriage

The practice of entering into a new marriage following the dissolution of a previous marriage through divorce or the passing away of a spouse.

Siblings

Individuals who share at least one parent in common, including brothers and sisters, both full and half.

Noncustodial Fathers

Fathers who do not have legal custody of their child/children, and thus the children reside primarily with the other parent.