Which of the Following Would Likely Increase the Money Supply

question 9

Multiple Choice

Which of the following would likely increase the money supply?

• A)One bank buys government securities from another bank.
• B)The required reserve ratio increases.
• C)The Fed increases the reserves of commercial banks and the banks hold these as excess reserves.
• D)The discount rate increases.
• E)A bank sells government securities to the Fed.

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