answersLogoWhite

0

The control of money supply can be achieved with two main concepts. One is to lower interest rates and the other is to control spending.

User Avatar

Wiki User

11y ago

What else can I help you with?

Related Questions

The fed chairman is in control of?

Money supply.


What is the primary way the feds control the supply of money?

The primary way the Fed controls the supply of money is by:


What is credit control policy of rbi?

control of supply and demand of the money.


What is the solution to control inflation in an economy?

Decreasing the money supply. Monetary policies are concerned with the increase or decrease of the money supply.


Which of the following factors does not reduce the Federal Reserve's control of the money supply?

The factor that does not reduce the Federal Reserve's control of the money supply is the ability to set reserve requirements for banks.


How does Brazil control inflation?

by controlling growth of money supply


Which of these is primarily responsible for the control of the money supply in the US?

The Federal Reserve


Why can't the central bank control the money supply completely?

The central bank cannot control the money supply completely because it relies on financial institutions and the public's behavior in the economy. For instance, when banks lend money, they create deposits, which expands the money supply beyond the central bank's direct influence. Additionally, factors like consumer confidence, demand for loans, and the velocity of money can vary, affecting the overall money supply in unpredictable ways. These dynamics make it challenging for central banks to exert total control.


How do central banks impact the global economy?

They influence the national money supply,which affects the volume of international trade.


What is the meaning of money stability?

Monetary stability refers to a state where the value of money remains relatively constant over time. This is usually achieved through measures like controlling inflation and ensuring economic growth. A stable money supply helps maintain confidence in the currency and facilitates economic transactions.


Should the federal reserve control the money supply?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.


How the the tools used by the Federal Reserve to control the money supply influence the money supply and in turn affect macroeconomic factors?

The economy of a country is affected by an infinite number of factors.