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The Federal Reserve Controls the Money Supply Through All of the Following

Question 33

Multiple Choice

The Federal Reserve controls the money supply through all of the following actions EXCEPT


A) raising the cash reserve that member banks are required to deposit with the Federal Reserve.
B) raising the interest rate that member banks are charged when they borrow from the Federal Reserve.
C) lowering the cash reserve that member banks are required to deposit with the Federal Reserve.
D) lowering the interest rate that member banks are charged when they borrow from the Federal Reserve.
E) lowering the tax rate on individuals.

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