If the Federal Reserve wants to reduce the money supply, it could:

Name: If the Federal Reserve wants to reduce the money supply, it could:
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All the options listed are tools the Federal Reserve can use to reduce the money supply. Raising the discount rate makes borrowing more expensive for banks, selling bonds on the open market removes liquidity from the economy, and raising the required reserve ratio limits the amount of money banks can lend out.

If the Federal Reserve Wants to Reduce the Money Supply