If the central bank wants to increase the money supply, it can O A. increase the

Question

If the central bank wants to increase the money supply, it can O A. increase the discount rate O B. sell bonds in the market for bonds O C. buy bonds in the market for bonds. OD. increase the reserve requirement for banks The Federal Reserve can 0 A. not determine the federal funds rate because it is determined in the private sector O B. determine the federal funds rate by changing the supply of central bank money O C. determine the discount rate by changing the supply of central bank money. O D. only controllthe money supply it cannot determine the interest rate to select your answer O Type here to search

Explanation / Answer

1. Option c.

2. Option b.

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