If the Federal Reserve System Wanted to Increase the Money

question 31

Multiple Choice

If the Federal Reserve System wanted to increase the money supply,it would most likely take which action first?

• A) Raise the reserve requirement
• B) Buy securities on the open market
• C) Print more money
• D) Lower the discount rate
• E) Reduce credit controls

---

Definitions:

Concrete-Operational

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events and understand concepts of conservation.

Preoperational

A stage in Piaget's theory of cognitive development, during which children aged 2 to 7 years old develop memory and imagination but do not yet think logically.

Preoperational Stage

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, marked by rapid language acquisition and symbolic thinking.

Age

A measure of the time an individual or object has existed, often used to describe developmental stages in humans.