Asked by
Anthony Vieyra
on Nov 11, 2024
Verified
The Fed primarily uses the reserve requirement to control the money supply.
Reserve Requirement
The mandate by central banks determining the minimum amount of reserves that must be held by a commercial bank, directly affecting the bank's capacity to lend.
- Learn about the techniques the Federal Reserve applies in leveraging monetary policy to steer the economy.
- Acquire insight into the consequences of the reserve requirement and the discount rate on the processes within banks.
Verified Answer
PH
Learning Objectives
- Learn about the techniques the Federal Reserve applies in leveraging monetary policy to steer the economy.
- Acquire insight into the consequences of the reserve requirement and the discount rate on the processes within banks.