Who controls the aggregate volume of demand deposits in the banking system?
A)The U.S.Treasury
B)The Federal Reserve Board of Governors
C)Congress
D)Bankers
E)The President of the United States

Question

Quizplus · Accepted Answer

The Federal Reserve Board of Governors controls the aggregate volume of demand deposits in the banking system through its ability to increase or decrease the money supply through monetary policy tools such as open market operations and reserve requirements. Congress, the U.S. Treasury, the President of the United States, and individual bankers do not have direct control over the aggregate volume of demand deposits.

Who Controls the Aggregate Volume of Demand Deposits in the Banking