If the Federal Reserve Wishes to Increase the Money Supply

question 99

Multiple Choice

If the Federal Reserve wishes to increase the money supply, it should:

• A) decrease the discount rate.
• B) increase interest paid on reserves.
• C) sell government bonds.
• D) decrease the monetary base.

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Definitions:

Sperm

Male reproductive cells or gametes involved in sexual reproduction, which can fertilize female gametes (ova) to produce offspring.

Embryonic Period

Occurs from about 2 to 8 weeks after pregnancy, in which rapid structural development takes place.

Blastocyst

A stage of early embryonic development in mammals, characterized by a spherical structure with an outer layer of cells and a fluid-filled cavity.

Major Body Systems

The main functional systems in the human body, such as the circulatory, respiratory, nervous, and digestive systems.