A central bank could alter the supply of money by:

Question

Quizplus · Accepted Answer

All the options listed are methods by which a central bank can alter the supply of money in the economy. A) Open market operations involve buying or selling government securities to influence the monetary base. B) Changing reserve requirements affects how much money banks can create through lending, thus altering the money multiplier. C) Adjusting the bank rate (interest rate at which the central bank lends to commercial banks) can influence borrowing and thus the money supply.

A Central Bank Could Alter the Supply of Money By