What does the Federal Reserve use to help control the money supply in the economy as a whole?
a. checks
b. stocks
interest rates
d. debit cards
Please select the best answer from the choices provided
The Federal Reserve controls inflation by managing credit, the largest component of the money supply. ... The Fed moderates long-term interest rates through open market operations and the fed funds rate. When there is no risk of inflation, the Fed makes credit cheap by lowering interest rates.
The Federal reserve uses three main tools to accomplish these goals: A change in reserve requirements, A change in the discount rate, and. Open market operations
