AFP
CTP · Question #904
(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…
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
How the community answered
(63 responses)- A3% (2)
- B75% (47)
- C14% (9)
- D8% (5)
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