when the federal reserve sells government bonds to the public, it: increases the m1 course hero

What would the Fed do if it wanted to use all four of its major monetary control tools to decrease the money?

Select one: a. buy bonds, reduce the discount rate, reduce reserve requirements , and reduce the interest rate paid on excess reserves.

Which policy controls the money supply?

c. Federal Reserve policy, which controls the money supply.

How is the purchasing power of money determined?

In the United States, the purchasing power of money is determined by:#N#Select one:#N#a. the underlying precious metals that back each unit of currency.#N#b . the value of U.S. treasury bonds that back each unit of currency.#N#c. Federal Reserve policy, which controls the money supply.#N#d. Congress, which controls the money supply.

Can the Fed create money by writing a check on itself?

d. Nothing; the Fed can create money simply by writing a check on itself.

Who must receive a budget allocation from Congress before it can write a check?

a. Congress; the Fed must receive a budget allocation from Congress before it can write a check.

Did the Fed increase its purchases of assets?

c. The Fed increased its purchases of assets, but offset this with an increase in the reserve requirement.