Q433
Federal Reserve increases money supply by
A.
selling Swiss bills
B.
buying Swiss bills
C.
selling treasury bills
AnswerD.
buying treasury bills
Answer: Option C
Solution
Answer: Option C
Solution:
Federal Reserve increases money supply by selling treasury bills. Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls.