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:

Supply Voltage

The electrical potential difference provided by a power source to operate electrical circuits, devices, or equipment, essential for the functioning of electronic systems.

Inductor Current

A measure of the flow of electric charge through an inductor, influenced by the inductor's properties and the circuit it is part of.

Phase

A measure of the position of a point in time on a waveform cycle, often used in the context of alternating electrical currents.

Parallel Circuit

An electrical circuit in which the components are connected in parallel, providing multiple paths for the current.