Which of the Following Fed Actions Will Decrease the Money

question 54

Multiple Choice

Which of the following Fed actions will decrease the money supply?

• A) an open market purchase of Treasury bills
• B) an increase in the required reserve ratio
• C) a decrease in the discount rate relative to the federal funds rate
• D) all of the above
• E) none of the above

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Definitions:

Competitive

Competitive refers to a situation or environment where individuals or groups compete against each other in order to achieve a goal or superiority.

Adaptive Coping

Strategies used to adjust to stressors in a healthy and constructive manner.

Catharsis

The release of emotional tension.

Denial

A psychological defense mechanism in which confrontation with a personal problem or with reality is avoided by denying the existence of the problem or reality.