When the Federal Reserve System wants to increase the money supply, which of the following actions would the Fed choose?
A. It purchases U.S. government securities.
B. It increases the discount rate.
C. It increases the required reserve ratio.
D. It sells bonds on the open market.
Answer: A
Economics
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Which of the following is the broadest based price index?
A. the consumer price index B. the producer price index C. the implicit price deflator D. the personal consumption expenditures price index
Economics
In 1913, Congress and the President did not envision that the Fed would control
A) the money supply. B) discount loans. C) lender-of-last-resort activity. D) broad control over most aspects of money and the banking system.
Economics