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The Federal Reserve can change the money supply with 1) open market operations, 2)making changes in the reserve ratio, and 3) making changes in the discount rate. Of the three policies the open market is the most common.

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15y ago

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Related Questions

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.


What government agency conducts monetary policy in the United States?

The Federal Reserve is responsible for managing the money supply in the U.S.


How does a change in discount rate change the money supply?

The Federal Reserve raises the rate in order to encourage banks to lend less.


How does the Federal Reserve use which of the following to regulate the nation's money supply?

The Federal Reserve uses tools like open market operations, reserve requirements, and the discount rate to regulate the nation's money supply.


What actions could the Federal Reserve take to decrease the money supply?

The Federal Reserve could decrease the money supply by raising interest rates, selling government securities, or increasing reserve requirements for banks.


What is is the purpose of the Federal reserve bank?

The Federal Reserve Bank manages the U.S. economy by controlling the money supply.


What is responsible for controlling the money supply?

Federal Reserve Bank


The Federal Reserve System controls the size of the?

Money supply


When the federal reserve decreases the money supply it generally does by selling bonds true or false?

It is true that when the Federal Reserve decreases the money supply it generally does by selling bonds. When the Federal Reserve sells bonds it pushes prices down and increases rates.


What effect do market operations have on the federal reserve?

they allow the Fed to change the nation's money supply to its most ideal level


What entity controls the money supply in the US?

The Federal Reserve (the FED)


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

The Federal Reserve