Which of the Following Actions by the FED Would Increase

question 85

Multiple Choice

Which of the following actions by the FED would increase the money supply?

• A) Reducing the required reserve ratio.
• B) Selling bonds in the open market.
• C) Increasing the discount rate.
• D) None of the above.

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Definitions:

Fatty Acids

Organic compounds made of long hydrocarbon chains ending in a carboxylic acid group, essential in diet and biology for energy storage and cell membrane structure.

Peptide

Short chain of amino acids linked by peptide bonds.

Protein

Large biomolecules composed of one or more long chains of amino acid residues, crucial for the structure, function, and regulation of the body's cells, tissues, and organs.