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CTP · Question #20

(Topic 1) The Federal Reserve can increase the money supply by:

The correct answer is D. purchasing government securities. See the full explanation below for the reasoning.

Question

(Topic 1)

The Federal Reserve can increase the money supply by:

Options

Aincreasing the reserve requirement.
Bincreasing the discount rate.
Cselling government securities.
Dpurchasing government securities.

How the community answered

(32 responses)

A
3% (1)
B
6% (2)
C
13% (4)
D
78% (25)

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