If the Fed determines that there is too much money in circulation, they will securities to take money __ of circulation

Question

marta [7]

2 years ago

8

If the Fed determines that there is too much money in circulation, they will securities to take money __ of circulation

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Advanced Placement (AP)

1 answer:

leonid [27] · Answer 1 · 2022-03-15T00:03:40+03:00

An increase in accounts payable will undoubtedly have the effect of freeing up cash due to the fact that the cash is not being used to pay back the securities and stays in the account of the borrower.
An increase in securities at the Federal Reserve level has the same effect for cash allowing printed money to be removed from circulation due to the fact that it is on hand.

If the Fed determines that there is too much money in circulation, they will ____ securities to take money ______ of circulation

If the Fed determines that there is too much money in circulation, they will securities to take money __ of circulation