Which of the following financial organizations has the ability to influence the supply of reserves in the United States?
A) The Fed
B) Private commercial banks
C) Public sector banks
D) The World Bank

Question

Quizplus · Accepted Answer

The Fed, or the Federal Reserve System, is the central bank of the United States and has the authority to influence the supply of reserves in the country. It can do this through various tools such as open market operations, setting reserve requirements, and adjusting the federal funds rate. Private commercial banks can also influence the supply of reserves, but to a lesser extent and through different means such as adjusting their lending practices. Public sector banks are typically managed by the government and may not have the same level of control over reserves as the Fed does. The World Bank is an international financial institution that provides loans and grants to developing countries and does not have any direct influence over the supply of reserves in the United States.

Which of the Following Financial Organizations Has the Ability to Influence