The supply of money is determined by:
A)the value of money
B)the price level
C)the Reserve Bank
D)the demand for money

Question

Quizplus · Accepted Answer

The supply of money in a country is determined by the central bank, which is responsible for managing the money supply through various monetary policy tools. In the case of the US, the Federal Reserve (or Reserve Bank) is responsible for setting interest rates, regulating banks, and conducting open market operations to influence the level of the money supply in the economy. The value of money, the price level, and the demand for money can all affect the money supply indirectly, but they are not the primary determinants of the money supply.

The Supply of Money Is Determined By