In Order to Increase the Money Supply, a Central Bank

question 91

Multiple Choice

In order to increase the money supply, a central bank would:

• A) reduce the minimum reserve requirements for banks.
• B) sell government bonds.
• C) sell assets like corporate debt bonds, mortgaged-backed securities and equities.
• D) increase the interest rates on government bonds.

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Definitions:

Procedural Justice

The concept of fairness in the processes that resolve disputes and allocate resources, focusing on the transparency and neutrality of the processes involved.

Welfare of Individuals

The overall health, happiness, and well-being of a person.

Empirically Based Practice

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Information, facts, or data that are systematically observed, recorded, and tested through scientific methods to establish facts or principles.