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Which action taken by a central bank would reflect expansionary monetary
policy?
A. Raising the interest that it pays to banks on the balance of their
reserves
B. Raising the discount rate to provide less in loans to banks
C. Lowering the reserve requirements for all banks
O D. Selling treasury securities to banks to reduce the money supply

Respuesta :

Tundexi

The action of lowering the reserve requirements for all banks and sales of treasury securities to banks to help reduce money supply reflect the expansionary monetary policy.

An expansionary monetary policy is an economy policy used to stimulate a declining economy and gross domestic policy.

The 3 expansionary monetary policy includes

  • lowering of interest rates
  • lowering of banks reserve requirements
  • buying of government securities.

Therefore, the action of lowering the reserve requirements for all banks and sales of treasury securities to banks to reduce the money supply reflect the expansionary monetary policy?

In conclusion, the Option C and D is correct

Read more about expansionary monetary policy

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Answer:

C Lowering the reserve requirements for all banks

Explanation:

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