Which of the Following Fed Actions Will Increase the Money

question 31

Multiple Choice

Which of the following Fed actions will increase the money supply?

• A) open market purchases of Treasury notes
• B) an increase in the required reserve ratio
• C) an increase in the discount rate
• D) all of the above
• E) none of the above

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Definitions:

High Explosives

Substances that detonate, producing an explosion characterized by extremely rapid release of gas and heat, used in military and industrial applications.

Detonate

To explode or cause to explode with sudden intensity, often used in the context of explosives or chemical reactions.

Pressure

The force applied perpendicular to the surface of an object per unit area over which that force is distributed.

Detonator

A device or a small amount of explosive used to trigger an explosive charge or set off another explosive device.