Which of the Following Is Not One of the Procedures

question 159

Multiple Choice

Which of the following is not one of the procedures the Fed uses to change the money supply?

• A)buying government securities
• B)selling government securities
• C)lending reserves through the discount window
• D)changing the required reserve ratio
• E)extending loans to the public

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Definitions:

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not full control over that company.

Net Income

The total profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Equity Method

The equity method is an accounting technique used to assess the investments in other companies, where the investment is recorded at original cost and adjusted according to the investor’s share of the investee's profit or loss.