Which of the following lists contains only actions that decrease the money supply?
A)lower the bank rate; raise the reserve requirement ratio
B)lower the bank rate; lower the reserve requirement ratio
C)raise the bank rate; raise the reserve requirement ratio
D)raise the bank rate; lower the reserve requirement ratio

Question

Quizplus · Accepted Answer

Raising the bank rate and raising the reserve requirement ratio both decrease the money supply by making borrowing more expensive and reducing the amount of money banks can lend.

Which of the Following Lists Contains Only Actions That Decrease