If the Federal Open Market Committee (FOMC) Decides to Expand

Multiple Choice

If the Federal Open Market Committee (FOMC) decides to expand the money supply, then:

A) ​it will issue directions to sell U.S.government securities, thus increasing the velocity of circulation of the money supply.
B) ​it will issue directions to purchase U.S.government securities, thus putting more reserves in the hands of banks.
C) ​it will order new Federal Reserve notes delivered to member banks.
D) ​it will raise the discount rate to member banks.