The Federal Reserve System controls the money supply primarily through

Question

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The Federal Reserve System controls the money supply primarily through open market operations, which involve the buying and selling of government securities on the open market to increase or decrease the amount of reserves banks have available to lend. This, in turn, affects the interest rates banks charge for loans and ultimately impacts the money supply. The other options listed - accounting operations, reserve requirement changes, jawboning, and changing the discount rate - are also tools the Federal Reserve uses to influence the money supply, but open market operations are the primary method.

The Federal Reserve System Controls the Money Supply Primarily Through