Which of the Following Would Likely Increase the Money Supply

question 9

Multiple Choice

Which of the following would likely increase the money supply?

• A)One bank buys government securities from another bank.
• B)The required reserve ratio increases.
• C)The Fed increases the reserves of commercial banks and the banks hold these as excess reserves.
• D)The discount rate increases.
• E)A bank sells government securities to the Fed.

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Definitions:

Continuously

Occurring without interruption or cessation.

Discontinuously

In a manner that is not continuous or consistent; occurring in separate parts or intervals.

Social Learning

The theory that people learn from one another through observation, imitation, and modeling, situated in a social context.

Psychoanalytic

Pertaining to the theory and method of psychology which emphasizes unconscious motivations and conflicts as determinants of behavior.