Which of the following actions by the Fed would be likely to increase the money stock?
A. Increasing the required reserve ratio
B. Increasing the discount rate
C. Reducing the required reserve ratio
D. Selling bonds in open market
Answer: C
Which of the following actions by the Fed would be likely to increase the money stock?
A. Increasing the required reserve ratio
B. Increasing the discount rate
C. Reducing the required reserve ratio
D. Selling bonds in open market