Which of the Following Fed Actions Would Both Decrease the Money

question 83

Multiple Choice

Which of the following Fed actions would both decrease the money supply?

• A)buy bonds and raise the reserve requirement
• B)buy bonds and lower the reserve requirement
• C)sell bonds and raise the reserve requirement
• D)sell bonds and lower the reserve requirement

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Definitions:

Prepaid Expense

An expense that has been paid in advance and recorded as an asset until it becomes an actual expense.

Accrued Revenue

Income earned but not yet received, representing goods or services provided to customers on credit.

Supplies Used

The total value or quantity of materials and supplies consumed during a production or operational period.

End-Of-Period Adjusting Entries

Entries recorded in journals at the close of an accounting cycle to refresh the balances of accounts prior to the compilation of financial statements.