The Fed Can Reduce the Federal Funds Rate by

question 54

Multiple Choice

The Fed can reduce the federal funds rate by

• A)decreasing the money supply. To decrease the money supply it could sell bonds.
• B)decreasing the money supply. To decrease the money supply it could buy bonds.
• C)increasing the money supply. To increase the money supply it could sell bonds.
• D)increasing the money supply. To increase the money supply it could buy bonds.

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Definitions:

Alzheimer's Disease

A progressive neurodegenerative disorder that causes memory loss, cognitive decline, and ultimately, loss of ability to carry out simple tasks.

Neurological Disorder

Any condition that is caused by a dysfunction in part of the brain or nervous system, leading to physical and/or psychological symptoms.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), most commonly associated with prolonged alcoholism.

Chronic Alcoholism

A severe form of alcohol dependency characterized by prolonged excessive drinking, leading to significant physical, social, and mental health issues.