Refer to the information in the table. The amount of currency held by the public ________, and the amount of reserves held by banks ________. It must be the case that, in 1932, the Federal Reserve ________.
A)increased; also increased; increased the discount rate
B)decreased; also decreased; kept the rate of inflation low
C)decreased; increased; performed open-market operations
D)increased; also increased; injected reserves into the economy

Question

Refer to the information in the table. The amount of currency held by the public ________, and the amount of reserves held by banks ________. It must be the case that, in 1932, the Federal Reserve ________. 
A)increased; also increased; increased the discount rate 
B)decreased; also decreased; kept the rate of inflation low 
C)decreased; increased; performed open-market operations 
D)increased; also increased; injected reserves into the economy

Quizplus · Accepted Answer

The amount of currency held by the public increased and the amount of reserves held by banks also increased, according to the table. From this we can conclude that the Federal Reserve injected reserves into the economy.

Refer to the Information in the Table