Which of the following lists two things that both decrease the money supply?
A) Lower the discount rate and raise the reserve requirement ratio.
B) Lower the discount rate and lower the reserve requirement ratio.
C) Raise the discount rate and raise the reserve requirement ratio.
D) Raise the discount rate and lower the reserve requirement ratio.

Question

Quizplus · Accepted Answer

Both raising the discount rate and raising the reserve requirement ratio decrease the money supply by making it more expensive or difficult for banks to borrow money from the Federal Reserve and lend it out to customers.

Which of the Following Lists Two Things That Both Decrease