The Money Supply Increases When the Fed

question 57

Multiple Choice

The money supply increases when the Fed

• A)lowers the discount rate.The increase will be larger the smaller the reserve ratio is.
• B)lowers the discount rate.The increase will be larger the larger the reserve ratio is.
• C)raises the discount rate.The increase will be larger the smaller the reserve ratio is.
• D)raises the discount rate.The increase will be larger the larger the reserve ratio is.

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Definitions:

Stable Isotope

Non-radioactive forms of atoms that have the same number of protons but a different number of neutrons, used in various scientific applications to study and trace processes.

Radiometric Dating

A method for determining the age of an object containing organic material by measuring the levels of various isotopes within it.

Earth's Crust

The outermost layer of the Earth, composed of a variety of rocks and minerals; it forms the continents and ocean basins.

Fault

A fracture or zone of fractures between two blocks of rock, which can cause large scale earth movements.