At One Time,people in a Certain Country Had No Access

Multiple Choice

At one time,people in a certain country had no access to banks;they relied exclusively on currency.Then,a fractional-reserve banking system was created.As a result,the money supply

A) increased.The central bank could have reduced the size of this increase by buying bonds.
B) increased.The central bank could have reduced the size of this increase by selling bonds.
C) decreased.The central bank could have reduced the size of this decrease by buying bonds.
D) decreased.The central bank could have reduced the size of this decrease by selling bonds.