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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