Final answer:
Actions that would decrease the money supply include raising the bank rate (discount rate) and raising the reserve requirement ratio, which leads to less borrowing by banks and less lending capacity, respectively.
Step-by-step explanation:
The question asks which list of actions would decrease the money supply.
Actions that decrease the money supply include:
- Raising the bank rate (also known as the discount rate), resulting in commercial banks reducing their borrowings from the central bank, which leads to a fall in the amount of loans available, thus decreasing the money supply.
- Raising the reserve requirement ratio, which increases the amount of money that banks are legally required to hold, therefore reducing the amount they can lend out, which decreases the circulating money supply.
Therefore, the correct answer is: b. raising the bank rate; raising the reserve requirement ratio.