Which of the Following Represents an Action by the Federal

question 329

Multiple Choice

Which of the following represents an action by the Federal Reserve that is designed to decrease the money supply?

• A) a decrease in the discount rate
• B) a decrease in federal spending
• C) selling government securities in the open market
• D) a decrease in the required reserve ratio

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Definitions:

Short-term Memory

Is a cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Verbal

Pertaining to words and language, both spoken and written.

Retained Indefinitely

Refers to the process of keeping information, memories, or materials for an unlimited period without forgetting or disposal.

Sensory Memory

The shortest-term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.