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

Question

Quizplus · Accepted Answer

Selling government securities in the open market reduces the amount of money available for banks to lend, leading to a decrease in the money supply. A decrease in the discount rate (A) or the required reserve ratio (D) would typically increase the money supply, while a decrease in federal spending (B) may or may not have an impact on the money supply depending on how it is financed.

Which of the Following Represents an Action by the Federal