If the fed wishes to increase the money supply then it should: increase the required reserve ratio. increase the discount rate.

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Anton [14]

3 years ago

14

If the fed wishes to increase the money supply then it should: increase the required reserve ratio. increase the discount rate.

buy government securities on the open market. do any of the above.

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1 answer:

charle [14.2K] · Answer 1 · 2022-03-01T03:33:55+03:00

The Fed can influence the money supply by modifying reserve requirements, which is the amount of funds banks must hold against deposits in bank accounts. ... Inopen operations, the Fed buys and sells government securities in the open market.If the Fed wants to increase the money supply, it buys government bonds.