To increase money supply growth, the Fed could
A)sell government securities in the secondary market.
B)increase the primary credit rate.
C)increase the reserve requirement ratio.
D)All of these are correct.
E)None of these are correct.

Question

Quizplus · Accepted Answer

To increase money supply growth, the Fed would buy government securities in the secondary market (not sell), decrease the primary credit rate (not increase), and decrease the reserve requirement ratio (not increase). Therefore, none of the provided options are correct actions for increasing money supply growth.

To Increase Money Supply Growth, the Fed Could