The Most Common Method Employed by the Fed to Increase

question 114

Multiple Choice

The most common method employed by the Fed to increase the money supply is the

• A)sale of U.S.government bonds.
• B)purchase of U.S.government bonds.
• C)sale of gold.
• D)increase of the federal debt ceiling.

---

Definitions:

Shed

A small building, typically made of wood or metal, used for storage or as a workshop, commonly found in gardens or backyards.

Sub-Bailment

A situation where a bailee (person who receives property) further entrusts the bailed property to another person, under a sub-bailment contract.

Original Bailor

The person who initially entrusts their property to another (the bailee) under an agreement for the property's temporary care or possession.

Gratuitous Bailment

An arrangement where personal property is temporarily transferred from one party to another without the expectation of payment, based on trust.