To increase the money supply, what could the Bank of Canada do?

Question

Quizplus · Accepted Answer

To increase the money supply, the Bank of Canada could decrease the reserve requirement. This means that banks would be required to hold less money in reserves, allowing them to lend out more money to consumers and businesses, effectively increasing the money supply. Selling government bonds would have the opposite effect, as it would decrease the money supply by taking money out of circulation. Increasing the bank rate would make borrowing more expensive and could decrease the money supply, while decreasing the money multiplier would also decrease the money supply.

To Increase the Money Supply, What Could the Bank of Canada