Which of the Following Is Not One of the Procedures

question 159

Multiple Choice

Which of the following is not one of the procedures the Fed uses to change the money supply?

• A)buying government securities
• B)selling government securities
• C)lending reserves through the discount window
• D)changing the required reserve ratio
• E)extending loans to the public

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Definitions:

Postdating

The act of dating a document, check, contract, or other legal instruments with a date that is later than the actual date.

Negotiability

The characteristic of a financial instrument that allows it to be transferred or assigned from one party to another.

Drawee

The individual or entity upon whom a check, draft, or bill of exchange is drawn and who is responsible for paying it.

First Bank

Historically, refers to the initial bank established in a region or country, or the earliest phase of banking service provision.