Reserve requirements,interest rate controls,and open-market operations are the tools used by the Fed to control the money supply.

Question

Quizplus · Accepted Answer

Reserve requirements require banks to hold a certain amount of funds in reserve, interest rate controls influence borrowing and lending rates, and open-market operations involve the buying and selling of government securities to adjust the money supply. These are the three main tools used by the Fed to control the money supply.

Reserve Requirements,interest Rate Controls,and Open-Market Operations Are the Tools Used