The one organization that has the power to change the total amount of reserves in the banking system is the
A) Congress.
B) Executive Branch of the Federal Government.
C) U.S. Treasury.
D) Federal Reserve System.

Question

Quizplus · Accepted Answer

The Federal Reserve System is responsible for setting the reserve requirement for banks and conducting open market operations, which involve buying and selling government securities to manipulate the amount of reserves in the banking system. Congress, the Executive Branch of the Federal Government, and the U.S. Treasury may have some influence on economic policies, but they do not have direct control over the amount of reserves in the banking system.

The One Organization That Has the Power to Change the Total