Explain how the Federal Reserve uses member banks to influence the nation's economy.

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Finley Nolan

Social Studies

5 March, 18:24

Explain how the Federal Reserve uses member banks to influence the nation's economy.

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Spookey · Answer 1

The way Federal Reserve influences the nation's economy is through buying and selling of US treasury bonds. Buying bonds will increase the money supply. Selling the bonds decreases the money supply. They have a belief that money supply controls the economy.