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3 years ago

Which best describes the function of the federal reserve system

2 answers:

7 0

Control of money supply.

The main function of Federal Reserve is to conduct the monetary policy by influencing money and credit conditions.

ArbitrLikvidat [17]3 years ago

6 0

Answer:

Control of money supply

Explanation:

The federal reserve control system is a prerogative of the Federal Reserve, which controls US monetary policy. Monetary policy consists of raising / lowering the interest rate and increasing / decreasing the money supply. When the economy is in recession, monetary policy is expansionary, so the Federal Reserve uses reserves to inject money into the economy. On the contrary, in inflationary situations, the Fed uses a contractionary monetary policy, which consists of withdrawing outstanding currency from the economy. This is done by buying / selling public titles.

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4 years ago

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4 years ago

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