What results in changes in the domestic money supply?
A) changes in the central bank's holding of domestic credit only
B) changes in the central bank's holding of foreign reserves only
C) some combination of changes in the central bank's holdings of domestic credit or foreign reserves
D) changes in the nation's stock of gold

Question

Quizplus · Accepted Answer

Changes in the domestic money supply can result from a combination of changes in the central bank's holdings of domestic credit or foreign reserves. These changes can be made through various monetary policy tools, such as open market operations or adjustments to reserve requirements. Changes in the nation's stock of gold, as well as changes in the central bank's holding of foreign reserves, can also have an impact on the domestic money supply, but to a lesser extent.

What Results in Changes in the Domestic Money Supply