QUESTION 6 Which of the following is not a function of the Federal Reserve System? A. Setting the required reserve ratio B. Establishing the prime lending rate (the prime lending rate is the average rate of interest charged on short term loans) Regulating banking activity D. Controlling the money supply QUESTION 4 If the Federal Reserve sells $1,000 in bonds and, as a result, the money supply decreases by S2,500, what is the required reserve ratio? O A. 0.4 B. 2.5 C. 0.5 D. 0.1 E. 0.2 QUESTION 6 Which of the following is not a function of the Federal Reserve System? A. Setting the required reserve ratio B. Establishing the prime lending rate (the prime lending rate is the average rate of interest charged on short term loans) Regulating banking activity D. Controlling the money supply QUESTION 4 If the Federal Reserve sells $1,000 in bonds and, as a result, the money supply decreases by S2,500, what is the required reserve ratio? O A. 0.4 B. 2.5 C. 0.5 D. 0.1 E. 0.2