Which of the Following Would NOT Decrease the Supply of Money

question 110

Multiple Choice

Which of the following would NOT decrease the supply of money in a fiat money economy?

• A) The Federal Reserve decides to link the value of money to a scarce, rare earth metal.
• B) The Federal Reserve decides to sell existing treasury securities.
• C) The Federal Reserve increases the required reserve ratio.
• D) The Federal Reserve increases the discount rate.
• E) The Federal Reserve decides to link the value of money to water (a commodity).

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Definitions:

Median

The middle value in a list of numbers, which separates the higher half from the lower half of the dataset.

Normally Distributed

Describes a data set where most values cluster around a central mean value, forming a symmetric, bell-shaped distribution curve.

Standard Deviation

A statistical measurement of variability or dispersion within a set of data, indicating how spread out the numbers are from the average.

Mean

A statistical measure representing the average or central value of a set of numbers, calculated by adding all the values and dividing by the count of the values.