When the Federal Reserve Sells Assets from Its Portfolio to the Public

question 41

Multiple Choice

When the Federal Reserve sells assets from its portfolio to the public with the intent of changing the money supply,

• A)those assets are government bonds and the Fed's reason for selling them is to increase the money supply.
• B)those assets are government bonds and the Fed's reason for selling them is to decrease the money supply.
• C)those assets are items that are included in M2 and the Fed's reason for selling them is to increase the money supply.
• D)those assets are items that are included in M2 and the Fed's reason for selling them is to decrease the money supply.

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Definitions:

Majority

The greater part or number; the number greater than half the total.

Self-Confidence

An individual's belief in their own abilities, capacities, and worth, which influences their actions and attitudes.

Social Loafing

The circumstances in which persons engaged in a group task demonstrate lower efforts in goal accomplishment than in solitary work conditions.

Personal Accountability

The responsibility of individuals for their actions and decisions, acknowledging their consequences.