The Federal Reserve satisfies the public's demand for currency by

Question

Quizplus · Accepted Answer

The Federal Reserve satisfies the public's demand for currency by wholesaling coins and paper currency to local banks. This means that the Federal Reserve supplies physical currency to banks, which then distribute it to the public when they withdraw money from their accounts or conduct cash transactions. The Federal Reserve does not print paper bills directly, nor does it set commercial bank profit margins or maintain constant fractions of various forms of money.

The Federal Reserve Satisfies the Public's Demand for Currency by