Which of the Following Represents an Action by the Federal

question 149

Multiple Choice

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

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

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Definitions:

Intangible Assets

Assets that lack physical substance but possess economic value, including patents, trademarks, and goodwill.

Land Held

Land held pertains to property owned by an entity as an investment or for future use, not immediately purposed for business operations.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life, reducing its book value.

Original Cost

Original Cost refers to the initial monetary value of an asset or investment at the time of purchase, before any depreciation, amortization, or impairment charges are applied.