Which of the following will result in an decrease of the money supply?
A) An increase in taxes
B) Purchase of securities by the Bank of Canada
C) A decrease in the bank rate
D) An increase in the discount rate
E) A decrease in reserve requirements

Question

Quizplus · Accepted Answer

An increase in the discount rate makes borrowing more expensive for banks, leading to reduced lending and a decrease in the money supply.

Which of the Following Will Result in an Decrease of the Money