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goblinko [34]
3 years ago
7

What happens when the Federal Reserve puts money into the banking system

Business
1 answer:
Anton [14]3 years ago
4 0
When the Federal Reserve puts money into the banking system,<em> short term interest rates fall</em> <span>because there is more capital in the system. This means that  banks are willing to take more risks. 

>>></span><span>The </span>Federal Reserve<span> System‍—‌also termed as the </span>Federal Reserve<span> or the Fed‍—‌is the central banking system of the United States. </span>
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