AFP
CTP · Question #568
(Topic 6) To increase the money supply, the Federal Reserve would increase which of the following?
The correct answer is C. The purchase of open market securities. See the full explanation below for the reasoning.
Question
- (Topic 6)
To increase the money supply, the Federal Reserve would increase which of the following?
Options
- AThe reserve requirement
- BThe discount rate
- CThe purchase of open market securities
- DThe federal funds interest rate
How the community answered
(58 responses)- A3% (2)
- B7% (4)
- C79% (46)
- D10% (6)
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