A goldsmith with 200 gold coins in his safe who keeps writing more and more goldsmith's receipts is

A) raising his reserve ratio and raising the money supply.
B) raising his reserve ratio and lowering the money supply.
C) lowering his reserve ratio and raising the money supply.
D) lowering his reserve ratio and lowering the money supply.

Reserve Ratio

The fraction of deposits that a bank is required to hold in reserve and not lend out, as mandated by the central bank.

Goldsmith's Receipts

Historical documents representing deposits made with goldsmiths that evolved into a form of early banking, where receipts functioned as proof of money or valuables deposited for safekeeping.

Money Supply

The aggregate amount of monetary assets available within a country, encompassing notes, coins, and digital balances, influencing an economy's inflation and interest rates.