Quizzol

QUESTION:

Which of the following statements is true?

a. The FOMC meets once per year to discuss monetary policy.

b. When the Fed buys government bonds, the money supply increases.

c. The primary tool of monetary policy is the reserve requirement.

d. The Federal Reserve was created in 1871 in response to the Civil War.

ANSWER:

b. When the Fed buys government bonds, the money supply increases.

Posted by Cleveland on September 9, 2024