Answer:
The answer is C
Step-by-step explanation:
During a period where there is too much of money in circulation, the value of money is worthless, inflation is high.
To reduce the money supply in circulation, the government through its central banks(The Fed in US), sells bonds to investors (which can be commercial banks or corporate individual). The investors buy these bonds and the interest rate falls
This tool employed by central banks in known as contractionary monetary tools.