Which of the following actions taken by a central bank would increase a nation's money supply?
A) Reduce the reserve requirement.
B) Sell bonds in open market operations.
C) Raise the discount rate.
D) Raise the federal funds rate.

Question

Quizplus · Accepted Answer

Reducing the reserve requirement allows banks to lend more of their deposits, effectively increasing the money supply.

Which of the Following Actions Taken by a Central Bank