The money supply is determined

Question

Quizplus · Accepted Answer

The money supply is determined by the Federal Reserve (the Fed), banks through their lending activities, and the public's demand for money. The Fed controls the base level of money supply through its monetary policy tools, banks influence it by deciding how much to lend out based on the reserves they hold, and the public affects it through their decisions to hold money or deposit it in banks. Congress and the President influence economic policy and regulations that can impact the money supply indirectly, but they do not directly determine the money supply.

The Money Supply Is Determined