 The country's central bank can influence the money supply in the economy. Purchasing government securities, such as treasury bills and government bonds, can raise the money supply in an economy. When the central bank reduces the money supply by selling securities on the open market and withdrawing liquid funds from the banking system, the opposite occurs. As the supply of these assets increases, their prices decline, and interest rates climb. The cash reserve ratio is a crucial monetary policy instrument used to control the money supply in an economy. It is a regulation implemented by the central bank of virtually every nation. How do you feel about the money supply control? In your opinion, what sort of securities does the central bank pedal in the open market? Share your thoughts in the comments.