Which of the following would NOT decrease the supply of money in a fiat money economy?
A) The Federal Reserve sells gold.
B) The Federal Reserve decides to sell existing Treasury securities.
C) The Federal Reserve increases the required reserve ratio.
D) The Federal Reserve increases the discount rate.
E) Fewer deposits are made in banks.

Question

Quizplus · Accepted Answer

Selling gold does not directly affect the money supply in a fiat money economy, as fiat money is not backed by gold.

Which of the Following Would NOT Decrease the Supply of Money