Which of the following lists two things that both increase the money supply?
A)make open market purchases and raise the reserve requirement ratio
B)make open market purchases and lower the reserve requirement ratio
C)make open market sales and raise the reserve requirement ratio
D)make open market sales and lower the reserve requirement ratio

Question

Quizplus · Accepted Answer

Open market purchases increase the money supply by adding reserves to the banking system, while lowering the reserve requirement ratio allows banks to lend more, also increasing the money supply.

Which of the Following Lists Two Things That Both Increase