Which of the following factors can contribute to a further reduction in the money supply in addition to a massive withdrawal of cash from banks?
A) Bank purchases of Treasury bonds from the Fed
B) Bank sales of government bonds to meet liquidity demands
C) Banks expand the approval and granting of loans
D) A decrease in the required reserve ratio

Question

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The Answer of Which of the following factors can contribute to a further reduction in the money supply in addition to a massive withdrawal of cash from banks?
A) Bank purchases of Treasury bonds from the Fed
B) Bank sales of government bonds to meet liquidity demands
C) Banks expand the approval and granting of loans
D) A decrease in the required reserve ratio

Which of the Following Factors Can Contribute to a Further