Your text discusses how the Federal Reserve System and other modern central banks affect or influence conditions in the economy and financial system. Through which channel or channels listed below do central banks like the Fed affect the economy and financial markets?

Question

Quizplus · Accepted Answer

Central banks like the Federal Reserve influence the economy and financial markets through various channels: they can alter the cost and availability of credit, modify the volume and rate of growth of the nation's money supply, affect the wealth of investors by influencing the market value of their security holdings, and change the public's expectations of future credit conditions.

Your Text Discusses How the Federal Reserve System and Other