To Change the Rate of Growth of the Money Supply

question 300

Multiple Choice

To change the rate of growth of the money supply, the Fed can do all but which one of the following?

• A) Engage in open market operations.
• B) Change the discount rate.
• C) Shift the demand for money curve by changing the interest rate.
• D) Change the required reserve ratio.

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Definitions:

Myelinated Axons

Nerve fibers covered with myelin, a fatty substance that insulates the axon and speeds up the transmission of nerve impulses.

Central Nervous System

The complex of nerve tissues that controls the activities of the body, comprising the brain and spinal cord.

Cortices

The outer layers or regions of an organ or structure, such as the cerebral cortex in the brain or the cortex of plant roots and stems.

Cerebrum

The largest part of the brain responsible for voluntary activities, intelligence, memory, and emotional responses.