Which of the following would cause the money supply in the United States to expand?
A) a decrease in reserve requirements
B) an increase in the discount rate
C) the sale of U.S. government bonds by a Federal Reserve bank
D) an increase in the world supply of gold

Question

Quizplus · Accepted Answer

Decreasing reserve requirements allows banks to lend out more money, increasing the money supply. The other options would decrease or have no effect on the money supply.

Which of the Following Would Cause the Money Supply in the United