Which of the Following Is an Action That the Fed

question 40

Multiple Choice

Which of the following is an action that the Fed uses to increase or decrease the money supply? ​

• A)buying or selling Treasury securities in the secondary market
• B)adjusting the tax rate imposed on income earned on Treasury securities
• C)adjusting the coupon rate on Treasury bonds
• D)selling Treasury securities in the primary market

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Definitions:

Equity Income

Refers to the income generated by an investor's share of profits from an equity investment, such as stocks or ownership interests in companies.

Fair Value

The obtainable price for liquidating an asset or the charge to shift a liability in a planned engagement with market operatives at the time of determining value.

Investment Account Balance

The total value of all the investments held in an investor's account, including stocks, bonds, mutual funds, and other assets.