How can the Federal Reserve actually increase the money supply?
A)by delaying transfer of money among banks
B)by raising the discount rate
C)by printing more money
D)by purchasing more government bonds in the open market

Question

Quizplus · Accepted Answer

The Federal Reserve can increase the money supply by purchasing government bonds in the open market, which injects money into the banking system, increasing the amount of money available for lending and spending.

How Can the Federal Reserve Actually Increase the Money Supply