The Federal Reserve can tightly control

Question

Quizplus · Accepted Answer

The Federal Reserve has the ability to control both cash in the hands of the public and demand deposits through its monetary policy tools such as open market operations, discount rate changes, and reserve requirement changes. While the Fed has some influence over funds in savings accounts and checking accounts through the interest rates it sets, these accounts are not as directly controlled as cash and demand deposits. The Fed does not control government borrowing.

The Federal Reserve Can Tightly Control