Final answer:
The combination of actions that only increases the money supply is c. lowering the bank rate; making open-market purchases.
Step-by-step explanation:
The question asks which list contains only actions that increase the money supply. The options given are combinations of central bank actions regarding the bank rate and open market operations. When the central bank lowers the bank rate, it generally encourages more borrowing and lending, which can increase the money supply. Additionally, when the central bank makes open market purchases of bonds, it pays out money that increases the reserves of individual banks, leading to an increase in the money supply. Conversely, open market sales by the central bank drain reserves from the banking system and reduce the money supply.
Considering this, the correct answer to the question is: c. lowering the bank rate; making open-market purchases. This combination of actions will lead to an increase in the money supply according to central bank policy mechanisms.
In a related topic, a rise in the supply of loans in the financial market will lead to an increase in the quantity of loans made and received, because a greater supply implies that more capital is available for borrowing.