Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

In 2009 the US central bank, the Federal Reserve, expanded the money supply. Which policy measure used by the Federal Reserve would have produced this result?

  • Aa purchase of government securities in the open market
  • Ba reduction in the issue of short-term government debt
  • Ca requirement for commercial banks to increase their liquidity ratios
  • Dan increase in the bank rate

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