这个题问的是货币的供应量还是货币的价值？

问题如下：

Question What happens to broad money when the central bank sells government bonds to commercial banks

选项：

A.decreases. B.stays constant. C.increases.

解释：

Solution

1. True, because as the central bank trades government securities with commercial banks, their reserves get depleted, thereby diminishing their lending potential (i.e., credit creation) to businesses and individuals, which in turn contracts the growth of the broad money supply via the money multiplier effect.
2. False, as the act of the central bank offloading government securities leads to a decline in the commercial banks' reserves. This subsequently reduces their ability to lend (i.e., create credit) to businesses and individuals, affecting the expansion of the money supply.
3. False, given that when the central bank trades away government securities, it diminishes the reserves of commercial banks. This curtails their lending capability (i.e., credit creation) to consumers and businesses, leading to a reduction in the growth of the broad money supply through the money multiplier process.

Monetary Policy

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