Which of the Following Actions Is Most Likely to Lead

question 167

Multiple Choice

Which of the following actions is most likely to lead to an increase in the money supply?

• A) Fed purchases of government securities
• B) an increase in the required reserve ratio
• C) an increase in the discount rate
• D) none of the above

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Definitions:

Profit Margin

A measure of profitability calculated as net income divided by revenue, or net profits divided by sales.

Interval Measure

Interval measure is a financial metric that assesses a company's ability to meet its current operational expenses by comparing its current assets to its current cash outflows.

Net Fixed Assets

These are a company's total fixed assets minus its accumulated depreciation, representing the actual value of the company’s fixed assets.

Average Daily Operating Costs

The average amount spent by a business on its day-to-day operational activities, divided by the number of days in the period.