When the Federal Reserve wants to increase the money supply, it:

Name: When the Federal Reserve wants to increase the money supply, it:
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

When the Federal Reserve wants to increase the money supply, it conducts open-market purchases. This means that the Fed purchases government bonds from banks and other financial institutions, which increases their reserves and allows them to lend out more money. This leads to an increase in the money supply in the economy.

When the Federal Reserve Wants to Increase the Money Supply