Possible Ways for the Fed to Increase the Money Supply

question 27

Multiple Choice

Possible ways for the Fed to increase the money supply include ________ the rediscount rate and ________ reserve requirements.

• A)lowering,lowering
• B)lowering,raising
• C)raising,lowering
• D)raising,raising

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Definitions:

Income

Earnings received by an individual or entity, including wages, salaries, investments, and other forms of compensation, which are subject to tax.

Schedule B

A section of IRS tax forms for reporting interest and dividend income.

Interest Income

Income earned from various forms of investments that pay interest, such as savings accounts, CDs, and government bonds, subject to income tax.

Dividend Income

Income received from owning shares in a corporation, typically paid out from the corporation's profits.