AFP
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)- A12% (7)
- B77% (44)
- C4% (2)
- D7% (4)
Community Discussion
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