How Can a Central Bank Change the Composition of the Money

question 81

Multiple Choice

How can a central bank change the composition of the money supply and increase the backing ratio?

• A) It can confiscate any foreign currency held by private citizens.
• B) It can borrow from the public and investing in foreign currency assets.
• C) It can bail out insolvent banks.
• D) It can expand the money supply.

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