If the Fed wants to decrease the money supply,it can _____.
A)sell bonds
B)buy bonds
C)sell treasury securities
D)raise the prime rate

Name: If the Fed wants to decrease the money supply,it can _____. A)sell bonds B)buy bonds C)sell treasury securities D)raise the prime rate
Brand: Quizplus
Rating: 4.7 (42 reviews)

Question

Quizplus · Accepted Answer

The Fed can decrease the money supply by selling bonds. When the Fed sells bonds, it takes money out of the economy, which reduces the money supply.

If the Fed Wants to Decrease the Money Supply,it Can