Typically,central banks increase the supply of money by ________.
A)buying bonds from banks
B)printing currency
C)directing the government to issue more money to banks
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Central banks typically increase the supply of money by buying bonds from banks, which puts more money into the banking system and increases the amount of reserves that banks have available to lend out to customers. Printing currency and directing the government to issue more money to banks are less common methods of increasing the money supply.

Typically,central Banks Increase the Supply of Money by ________