Q423
Federal Reserve increases money supply by
A.
selling treasury bills
B.
buying treasury bills
AnswerC.
selling Swiss bills
D.
buying Swiss bills
Answer: Option B
Solution
Answer: Option B
Solution:
Federal Reserve increases money supply by buying 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.