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CTP · Question #904

CTP Question #904: Real Exam Question with Answer & Explanation

The correct answer is B. 1 and 4. See the full explanation below for the reasoning.

Question

  • (Topic 9) The Fed can reduce the money supply by doing which of the following? 1.Increasing reserve requirements 2.Purchasing government securities 3.Increasing legal lending limits 4.Selling government securities

Options

  • A1 and 2
  • B1 and 4
  • C3 and 4
  • D2, 3, and 4

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