Which of the Following Federal Actions Is Aimed at Reducing

question 51

Multiple Choice

Which of the following federal actions is aimed at reducing the money supply in markets?

• A) The Fed liberalizes credit controls actions on loans.
• B) The Fed buys treasury bills from the market.
• C) The Federal Reserve raises the discount rate.
• D) The Federal Reserve reduces the reserve requirement.
• E) The Federal Reserve promotes new loans to small businesses.

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Definitions:

Liabilities

Monetary commitments or liabilities that a business is responsible for repaying to others in the future.

Revenue

The total income generated from normal business operations, including sales of goods and services before any expenses are deducted.

Expanded Accounting Equation

An extension of the basic accounting equation that includes components such as owner's equity, retained earnings, and dividends.

Beginning Balances

The balances of accounts at the start of a new accounting period, carried over from the end of the prior period.