Which of the Following Actions by the Fed Would Cause

question 77

Multiple Choice

Which of the following actions by the Fed would cause the money supply to increase?

• A) Purchases of government bonds from banks.
• B) An increase in the reserve requirement.
• C) An increase in the discount rate.
• D) Sales of government bonds to the public.

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Definitions:

Hypothetical Entities

Concepts or objects that are assumed for the sake of argument or investigation, even if they may not actually exist.

Adolescent Growth Spurt

A rapid increase in height and weight, along with other bodily changes, occurring during puberty.

Boys

Male children or young men.

Girls

Female children or young women.