By raising and lowering the interest rates at which private banks borrow money from the government,the Federal Reserve Bank:

Question

Quizplus · Accepted Answer

By raising or lowering interest rates, the Federal Reserve Bank can influence the amount of money in circulation in the economy, which affects the size of the money supply. This can also impact the value of the dollar, as changes in interest rates can affect the demand for the currency. Therefore, both options A and B are correct, while option C is not relevant to the actions of the Federal Reserve Bank.

By Raising and Lowering the Interest Rates at Which Private