If the Fed Sells Government Securities, Then There Is

question 271

Multiple Choice

If the Fed sells government securities, then there is

• A) an increase in the supply of money.
• B) a decrease in the supply of money.
• C) a decrease in the discount rate.
• D) an increase in the required reserve ratio.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how many times a company collects its average accounts receivable balance within a specific period.

Preceding Year

Refers to the year that immediately comes before the current year.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement within financial reporting.