Examveda
Examveda

Federal Reserve increases money supply by

A. selling Swiss bills

B. buying Swiss bills

C. selling treasury bills

D. buying treasury bills

Answer: Option C

Solution(By Examveda Team)

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.

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