Which of the following actions by the Fed would increase the money supply?
A) Increasing the required reserve ratio.
B) Selling government bonds in the open market.
C) Increasing the discount rate.
D) Reducing the required reserve ratio.

Question

Quizplus · Accepted Answer

Reducing the required reserve ratio would increase the money supply by allowing banks to lend out more of their deposits.

Which of the Following Actions by the Fed Would Increase