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CTP · Question #779

(Topic 8) If the Federal Reserve wanted to stimulate a sluggish economy, it could do so by:

The correct answer is B. buying U.S. government securities in the open market. See the full explanation below for the reasoning.

Question

  • (Topic 8)

If the Federal Reserve wanted to stimulate a sluggish economy, it could do so by:

Options

  • Aincreasing reserve requirements.
  • Bbuying U.S. government securities in the open market.
  • Cselling U.S. government securities in the open market.
  • Dincreasing margin requirements.

How the community answered

(57 responses)
  • A
    12% (7)
  • B
    77% (44)
  • C
    4% (2)
  • D
    7% (4)

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