Multiple Choice
Which of the following would cause the U.S.money supply to expand?
A) a commercial bank using excess reserves to extend a loan to a customer
B) a commercial bank purchasing U.S. securities from the Fed as an investment
C) an increase in reserve requirements
D) an increase in the discount rate
E) a purchase of U.S. government securities by the Fed
Correct Answer:

Verified
Correct Answer:
Verified
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