A Decrease in the Money Supply Might Indicate That the Fed

question 81

Multiple Choice

A decrease in the money supply might indicate that the Fed had

• A)purchased bonds to increase banks reserves.
• B)purchased bonds to decrease banks reserves.
• C)sold bonds to increase banks reserves.
• D)sold bonds to decrease banks reserves.

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Definitions:

Freight Charges

Costs associated with transporting goods from one place to another, typically paid by the buyer or seller depending on the shipping terms.

Merchandise Inventory

Merchandise inventory comprises goods a retail business holds for sale to customers, reflecting the products available for resale.

Freight In

Freight in is the cost associated with transporting goods into a business from suppliers, and is often included in the inventory cost.

Merchandise Inventory

Refers to the products a company has in stock that are available for sale to customers.