There are several ways that governments can increase or decrease the money supply. Match the descriptions below with the corresponding policy tool. It is possible that a description does not apply to any of the terms. Open Market Operations Reserve Requirement Discount Rate Quantitative Easing
1. A government printing more currency.
2. An increase in government spending.
3. An increase in the interest rate that a central bank charges commercial banks for loans.
4. A central bank purchasing existing bonds.
5. An increase in the percentage of deposits that banks must keep on hand.
6. A central bank purchasing a large quantity of longer-term Treasury bonds.