When the Federal Reserve Wants to Increase the Money Supply

question 9

Multiple Choice

When the Federal Reserve wants to increase the money supply, it:

• A) conducts open-market purchases.
• B) conducts open-market sales.
• C) increases the reserve rate.
• D) buys euros.
• E) prints money.

---

Definitions:

Consideration Transferred

The total payment made by an acquirer to obtain control of an acquiree, which can include cash, assets, or other forms of payment.

Fair Value

A measurement of an asset's sale price, assuming a transaction between knowledgeable, willing parties in an arm's length transaction.

Directly Attributable Costs

Costs that can be directly linked to a specific asset, activity, or project, and thereby included in its cost base.