Asked by Vanessa Ramirez on Jul 16, 2024
Verified
Which of the following actions is the Federal Reserve Board most likely to take in an attempt to increase the money supply in the economy?
A) Raise reserve requirements
B) Buy government securities
C) Print more money
D) Raise discount rates
E) Restrict credit controls
Government Securities
Debt instruments issued by a government to raise funds from the public.
- Comprehend the function of the Federal Reserve Board in controlling the monetary supply and its effect on the economic landscape.
Verified Answer
MT
Mason TwittyJul 17, 2024
Final Answer :
B
Explanation :
Buying government securities is a common method used by the Federal Reserve to increase the money supply. This action injects liquidity into the banking system, encouraging lending and economic activity.
Learning Objectives
- Comprehend the function of the Federal Reserve Board in controlling the monetary supply and its effect on the economic landscape.
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