How can the Federal Reserve actually increase the money supply?
A. by delaying transfer of money among banks
B. by raising the discount rate
C. by printing more money
D. by purchasing more government bonds in the open market
The Federal Reserve can change the money supply with 1) open market operations, 2)making changes in the reserve ratio, and 3) making changes in the discount rate. [ Of the three policies the open market is the most common.
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