Ask Question
6 February, 13:57

The Federal Reserve influences the level of interest rates in the short run by changing the:

A. demand for money through open market operations.

B. demand for money through changes in reserve requirements.

C. supply of money through open market operations.

D. supply of money through changes in stock market operations

+3
Answers (1)
  1. 6 February, 17:48
    0
    The correct answer is letter "C": supply of money through open market operations.

    Explanation:

    The United States Federal Reserve (Fed) facilitates a stable and growing economy by increasing the supply of money to spare growth and by shrinking the supply when inflation hits. Its three (3) main tools are manipulating reserve requirements, changing the discount rate, and open-market operations.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Federal Reserve influences the level of interest rates in the short run by changing the: A. demand for money through open market ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers