An Increase in the Money Supply Might Indicate That the Fed

question 14

Multiple Choice

An increase 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.

---

Definitions:

Minnesota Multiphasic Personality Inventory

A widely used standardized psychometric test of adult personality and psychopathology to assist with the diagnosis of mental disorders.

Reading Skills

The abilities that enable a person to decode written text, comprehend, interpret, and critically analyze texts.

Appropriate

Suitable or proper in the circumstances.

Personality

The unique and relatively stable patterns of behavior, thoughts, and emotions that characterize an individual throughout life.