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Len [333]
3 years ago
11

How does the Federal Reserve control the money supply?

History
1 answer:
Brrunno [24]3 years ago
4 0

The Federal Reserve controls the money supply by:

  • raising or lowering the discount rate.
  • by raising or lowering the reserve requirement.
  • by buying and selling government bonds and treasury bills.

<h3>What is Federal Reserve?</h3>

It should be noted that the Federal Reserve simply means the bank that oversees the economic affairs in a country.

Here, the Federal Reserve controls the money supply by raising or lowering the discount rate, raising or lowering the reserve requirement, and by buying and selling government bonds and treasury bills.

Learn more about federal reserve on:

brainly.com/question/25817380

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Increased transparency and accountability actions would enhance the Federal Reserve's ability to make economic policy in the following ways:

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  3. Minimizing the costs of anti-inflation monetary policy.

<h3>What is increased transparency and accountability?</h3>

Increased transparency refers to the increased availability of information to judge or measure the performance of those in authority.  

Transparency eliminates power misuse.  It is the bedrock of accountability.

Accountability refers to the process of holding those in authority responsible for their decisions and actions.

Thus, transparency and accountability are essential ingredients of good governance.

Learn more about transparency and accountability at brainly.com/question/14590546

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