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Author Question: Which set of actions could the Fed use to increase the money supply? (Read 56 times)

james

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Question 1

From time to time, the Federal Reserve buys back government bonds from the private sector through a process called


◦ open market purchases.
◦ voluntary redemption procedures.
◦ bond recall procedures.
◦ backflip bond investments.

Question 2

Which set of actions could the Fed use to increase the money supply?


◦ discount rate cut and an open market sale
◦ an open market purchase and a tax cut
◦ a reduction in the required reserve ratio and an open market purchase
◦ an open market sale and a reduction in the required reserve ratio


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Marked as best answer by james on Apr 19, 2019

elizabethrperez

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james

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elizabethrperez

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