which of these methods are used by the federal reserve to affect the supply of money in the u.s. economy, and which are not? place each item under the appropriate title. you are currently in a sorting module. turn off browse mode or quick nav, tab to items, space or enter to pick up, tab to move, space or enter to drop. methods the fed uses to affect the money supply not a method used by the fed

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10-12-2022
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which of these methods are used by the federal reserve to affect the supply of money in the u.s. economy, and which are not? place each item under the appropriate title. you are currently in a sorting module. turn off browse mode or quick nav, tab to items, space or enter to pick up, tab to move, space or enter to drop. methods the fed uses to affect the money supply not a method used by the fed

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jaiswaljyoti jaiswaljyoti · Answer 1 · 2022-12-19T10:19:50+01:00

First, it is a mechanism that can be swiftly and inexpensively implemented—the Fed only needs to call a broker who buys or sells bonds.

Second, it doesn't require a lot of political discussions or a big announcement to be made.

Thirdly, it is a fairly potent instrument, with each bond purchase or sale having an overall effect that is several times greater than the original transaction.

Fourth, by using this mechanism, the Fed can alter the money supply by a small or big amount at any one time.

The Fed can do the following to reduce the growth of money in the US:

Sell bonds, increase reserve requirements, or increase the discount rate, among other options.

Learn more about bond purchase here brainly.com/question/18827296

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