Question

The Federal Reserve wants to increase the money supply in the United States. What is the Federal Reserve likely to do to accomplish this?
A) reduce the discount rate
B) sell securities on the open market
C) increase the reserve requirement for banks
D) require banks to hold a reserve for all types of deposits

Answer 1

When were talking about the Federal Money Reserve we can eliminate B)sell securities on the open market. Because they don't do that when they want to increase money supply. C and D will be eliminated because they don't help in this way either. So the correct answer is A)reduce the discount rate

Answer 2

The answer is A) y'all are welcome