Although the Fed can destroy money,it is impossible for the Fed to create money out of thin air.

Name: Although the Fed can destroy money,it is impossible for the Fed to create money out of thin air.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Fed has the authority to create money out of thin air through the process of open market operations, where they purchase government securities from banks and other financial institutions. This increases the banks' reserves, allowing them to lend more, thus increasing the money supply in the economy.

Although the Fed Can Destroy Money,it Is Impossible for the Fed