To Increase the Money Supply,the Fed Might

question 17

Multiple Choice

To increase the money supply,the Fed might:

• A)increase the reserve requirement and the discount rate.
• B)decrease the reserve requirement and the discount rate.
• C)increase the reserve requirement and decrease the discount rate.
• D)sell government securities and increase the discount rate.
• E)sell bonds on the open market and increase the reserve requirement.

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Definitions:

Lactation

Period after childbirth during which milk is formed in the breasts.

Nutrients

Essential substances obtained from food that are necessary for growth, energy, and maintaining body functions.

Internal Cavity

A hollow space within the body that houses organs, such as the thoracic or abdominal cavities.

Embryonic Disc

A flat, circular layer of cells in the early embryo from which the body of the organism begins to develop.