Which of the Following Policy Actions by a Central Bank

question 34

Multiple Choice

Which of the following policy actions by a central bank is likely to increase the money supply?

• A) Increasing the refinancing rate.
• B) All of these will increase the money supply.
• C) Buying government bonds in open market operations.
• D) Increasing reserve requirements.

---

Definitions:

Socioemotional Development

The process of developing the ability to experience, express, and manage emotions, as well as establishing meaningful relationships with others.

Erikson's Theory

A psychoanalytic theory of psychological development comprising eight stages from infancy to adulthood, emphasizing the influence of society on personality development.

Autonomy Vs. Shame

A developmental stage proposed by Erik Erikson, highlighting the conflict children face between self-sufficiency and self-doubt.

Adolescent Egocentrism

A developmental stage where teenagers excessively focus on themselves and are often unable to see things from others' perspectives.