When the Fed is _ it is .
A) adjusting the amount of money in circulation; issuing government bonds
B) regulating the nation's financial institutions; conducting monetary policy
C) adjusting the amount of money in circulation; conducting monetary policy
D) issuing government bonds; conducting monetary policy

Question

Quizplus · Accepted Answer

The Fed adjusts the amount of money in circulation through its monetary policy, which includes actions such as adjusting interest rates and buying or selling government securities. Therefore, options A and D are incorrect as issuing government bonds is not directly related to the Fed's primary function of monetary policy. Option B is also incorrect as regulating financial institutions is just one of the Fed's many responsibilities, and not necessarily directly related to adjusting the amount of money in circulation.

When the Fed Is _ It Is