Question

In addition to the Federal Reserve​ Bank, what other economic actors influence the money​ supply? A. The U.S. President and Vice President. B. The U.S. Senate and the U.S. House of Representatives. C. The U.S. Mint and the U.S. Treasury. D. ​Households, firms, and banks.

Answer 1

Answer:

The correct answers are C and D.

Explanation:

The correct answers are C and D because both the US Mint and Treasury, and households, firms and banks each influence the country's money supply in their own way. The US Mint and Treasury influence the money supply because they control how much money is issued (i.e. printed) and spent, and how it is spent. On the other hand, households (families and individuals), firms (companies and organizations) and banks affect the money supply because they all participate in the economy on a daily basis: firms, for instance, may produce goods and services which get exchanged for money when households consume or acquire them, and banks may provide financial incentives or aid to both. All of these activities determine the money supply, i.e. how much money is available and circulating in the economy at any given time.