The Fed attempts to control M2 by controlling total reserves of depository institutions.

Name: The Fed attempts to control M2 by controlling total reserves of depository institutions.
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Question

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The Federal Reserve influences M2, which includes cash, checking deposits, and easily convertible near money, by controlling the total reserves of depository institutions through monetary policy tools such as open market operations, reserve requirements, and the discount rate.

The Fed Attempts to Control M2 by Controlling Total Reserves