Which of the following factors can contribute to a reduction in the money supply?
A) bank purchases of Treasury bonds from the Fed
B) bank sales of government bonds to meet liquidity demands
C) banks expanding the approval and granting of loans
D) a decrease in the required reserve ratio

Question

Quizplus · Accepted Answer

The Answer of Which of the following factors can contribute to a reduction in the money supply?
A) bank purchases of Treasury bonds from the Fed
B) bank sales of government bonds to meet liquidity demands
C) banks expanding the approval and granting of loans
D) a decrease in the required reserve ratio

Which of the Following Factors Can Contribute to a Reduction