Which of the following might the Bank of Canada do to increase the money supply?

Question

Quizplus · Accepted Answer

The Bank of Canada can increase the money supply by buying government securities. When the bank buys these securities, it increases the amount of money in circulation in the economy, which can increase spending and boost economic activity.

Alternatively, another option could be:

Answer: E
 The Bank of Canada can also increase the money supply by decreasing the reserve rate. Lowering the reserve rate (the amount of funds that banks are required to hold in reserves) allows banks to lend out more money, increasing the overall supply of money in the economy.

Which of the Following Might the Bank of Canada Do