lollyp4362 lollyp4362
  • 02-01-2020
  • Business
contestada

If the Federal Reserve wants to expand reserves in the banking system, it will:________

Respuesta :

jepessoa
jepessoa jepessoa
  • 06-01-2020

Answer:

A) purchase government securities.

Explanation:

By purchasing government securities, the Fed is engaging in an expansionary monetary policy that will increase the money supply. The Fed purchases government securities and gives money to the banks, increasing their reserves. This will expand the banking system's lending capacity, and their capacity to create money.  

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