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The Federal Reserve Alters the Amount of the Nation's Money

Question 5

Multiple Choice

The Federal Reserve alters the amount of the nation's money supply by


A) reducing the liabilities of the banking system.
B) controlling the assets of the nation's largest banks.
C) minting coins and printing currency that is distributed to banks.
D) manipulating the size of excess reserves held by commercial banks.Topic: Tools of Monetary Policy

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