Which of the following represents an action by the Federal Reserve that is designed to increase the money supply?

Question

Quizplus · Accepted Answer

A decrease in the required reserve ratio means that banks are required to hold less money in reserve and can therefore lend out more money, which increases the money supply. Selling government bonds in the open market, increasing the discount rate, and decreasing federal tax rates all have the opposite effect of decreasing the money supply.

Which of the Following Represents an Action by the Federal