Suppose the Bank of Canada Chooses to Expand the M2

Multiple Choice

Suppose the Bank of Canada chooses to expand the M2 measure of money supply by exactly $10 million.The Bank could implement this expansion by

A) buying $10 million worth of government securities on the open market.
B) selling $10 million worth of government securities on the open market.
C) increasing reserves at the commercial banks by $10 million.
D) decreasing reserves at the commercial banks by $10 million.
E) None of the above would lead to an increase of M2 by $10 million.