plz answer this question with explanation if possible QUESTION 2 How does the Fe
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plz answer this question with explanation if possible
QUESTION 2 How does the Federal Reserve affect the supply of money using open market operations? a. The Fed buys government bonds from banks, which increases the banks' reserves with the Fed and b. The Fed sells government bonds, which increases aggregate demand and requires more money to be c. The Fed decreases the reserve requirements of banks, thus allowing more money to be in circulation. allows them to make new loans. printed. d. The Fed increases the reserve requirements of bank and thus banks must obtain additional funds from the Fed. e. The Fed increases interest rates and then prints more money so that borrowers will be able to pay the higher rates.Explanation / Answer
Answer
Option a
open market operations where Fed sell or purchase money to control the money supply and inflation as well as the unemployment in the economy.
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