The Fed has control over bank reserves and complete control over the money supply. a. True b. False

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Question

The Fed has control over bank reserves and complete control over the money supply. a. True b. False

The Fed has control over bank reserves and complete control over the money supply.

	a.	True
	b.	False

business economics

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Answer 1

Answer #1

Answer

False

The Fed has control over some components of the money supply so it can control the money supply indirectly as it has control over the required reserve ratio, interest rates, and discount rates.

But it can not control the public holding of the money and also can not control the excess reserves.

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Answer 2

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The Fed has control over bank reserves and complete control over the money supply. a. True b. False

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The Fed has control over bank reserves and complete control over the money supply. a. True b. False

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