The Federal Reserve controls the money supply primarily by affecting the quantity of ____ that banks use to make loans.

Name: The Federal Reserve controls the money supply primarily by affecting the quantity of ____ that banks use to make loans.
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The Federal Reserve controls the money supply primarily by affecting the quantity of reserves that banks use to make loans. By adjusting the reserves, the Fed can influence how much money banks can create through lending.

The Federal Reserve Controls the Money Supply Primarily by Affecting