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Mkey [24]
2 years ago
6

Suppose the reserve requirement for the United States is 20%.

Business
1 answer:
Ronch [10]2 years ago
6 0

When the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.

<h3>What is Federal Reserve?</h3>

It should be noted that the Federal Reserve controls the monetary aspect in an economy.

In this case, when the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.

Also, when the Fed wants to decrease the money supply, the thing that should be done will be to sell bonds.

Learn more about Federal Reserve on:

brainly.com/question/25817380

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