Which of the following events could decrease the cost of money? Check all that apply.

(A) Inflation increases

(B) The federal deficit decreases

(C) The Federal Reserve purchases Treasury securities held by banks

(D) The Federal Reserve sells Treasury securities to banks

In my opinion the correct answers are items A, D

Explanation

A, Because if the inflation increases it means that there are high price to purchase goods, that is why people are afraid to this high prices and it leads to reduce interest rates and savings.

D, Because if there are low interest rates the price of Treasuary securities are more expensive.