Which of the following actions is the Federal Reserve Board most likely to take in an attempt to increase the money supply in the economy?
A)Raise reserve requirements
B)Buy government securities
C)Print more money
D)Raise discount rates
E)Restrict credit controls

Question

Quizplus · Accepted Answer

Buying government securities is a common method used by the Federal Reserve to increase the money supply. This action injects liquidity into the banking system, encouraging lending and economic activity.

Which of the Following Actions Is the Federal Reserve Board