Which of the following lists two things that both increase the money supply?
A) raise the discount rate,make open market purchases
B) raise the discount rate,make open market sales
C) lower the discount rate,make open market purchases
D) lower the discount rate,make open market sales

Question

Quizplus · Accepted Answer

Lowering the discount rate and making open market purchases both increase the money supply. Lowering the discount rate encourages banks to borrow more money from the central bank, which increases the amount of money in circulation. Making open market purchases involves the central bank buying securities from the public or commercial banks, which also puts more money into circulation.

Which of the Following Lists Two Things That Both Increase