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The Primary Way in Which the Fed Controls the Supply

Question 188

Multiple Choice

The primary way in which the Fed controls the supply of money is by:


A) establishing the amount of currency the U.S. Treasury is allowed to print.
B) changing the reserve requirement as per prevailing economic conditions.
C) buying and selling government securities in open market operations.
D) allowing banks to borrow more money from the U.S. Treasury.

Correct Answer:

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