Question: There are several ways that governments can increase or decrease the money supply. Match the descriptions with the Open market operations Reserve requirement Discount rate
There are several ways that governments can increase or decrease the money supply. Match the descriptions with the
Open market operations
Reserve requirement
Discount rate
Quantitative easing
Answer Bank
an increase in the interest rate that a central bank charges commercial banks for loans
an increase in government spending
a central bank purchasing a large quantity of longerterm Treasury bonds
a government printing more currency
an increase in the percentage of deposits that banks must keep on hand
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