If the Fed Was to Use All of Its Three

question 100

Multiple Choice

If the Fed was to use all of its three most common tools to increase the money supply, it would:

• A)​buy bonds, reduce the discount rate, and reduce reserve requirements.
• B)​sell bonds, reduce the discount rate, and reduce reserve requirements.
• C)​sell bonds, reduce the discount rate, and increase reserve requirements.
• D)​sell bonds, increase the discount rate, and increase reserve requirements.