QUESTION 20 1 points Save Answer To stimulate economic activity the Fed could increase the reserve ratio. O TRUE O FALSE QUESTION 21 1 points Save Answer The money market is the market in which are traded, O new issues of securities O previously issued securities O short-term debt instruments O long-term debt and equity instruments QUESTION 22 1 points Save Answer If your employer offers a defined benefit plan whose funded ratio is 50% you should not be concerned since you do not plan to retire soon. TRUE O FALSE. QUESTION 23 1 points Save Answer An open market purchase of securities by the Fed will: increase commercial banks' reserves increase the public's deposits at commercial banks O decrease the money supply O all of the above O only A) and B) above. QUESTION 24 1 points Save Answer If the Federal Reserve wants to decrease excess reserves in the banking system, it will: O buy government securities O raise the discount rate sell government securities O lower the discount rate. QUESTION 25 1 points Save Answer When the Social Security Trust Fund is exhausted, the system will stop paying benefits. O TRUE O FALSE