What's the Most Common Way for a Central Bank to Reduce

question 56

Multiple Choice

What's the most common way for a central bank to reduce the money supply?

• A)Collect higher taxes
• B)Sell bonds to the public
• C)Buy bonds from the government
• D)Buy bonds from the public

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Definitions:

Serious Mental Illness

A mental, behavioral, or emotional disorder resulting in serious functional impairment, which substantially interferes with or limits one or more major life activities.

Psychotropic Medication

Drugs that affect the mind, emotions, and behavior and are used to treat psychiatric disorders.

Homicidal Ideation

Thoughts about homicide, which can range from vague ideas of wanting to harm someone to detailed plans.

Psychosis

A mental disorder characterized by a disconnect from reality, often featuring hallucinations, delusions, and impaired thought processes.