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The Federal Reserve has the power to directly increase or restrict the amount of
money available to consumers to spend or invest through:

A.open-market operations, whereby the Fed buys and sells government securities

B.federal funds adjustment, which involves interest rates charged by one bank to
another.

C.adjustment of the reserve requirement, which is the amount of cash and
securities that every bank must have available.

D.the discount rate, which is the interest it charges on the loans it extends to
member banks.

Respuesta :

Answer:b

Explanation:

The federal reserves as the power to directly increase or restrict money by the federal fund's adjustment involving interest rates from banks to banks. Thus option B is correct.

What is a federal reserve?

A federal reserve is a system of central banking in the US and was enated in 1913 as a set of rules and acts and is financial control system. It controls the money values in order to alleviate the crisis.

The federal fund's adjustment is thus a way for the central bank to increase or decrease the amount of money to consumers.

Find out more information  about the Federal Reserve.

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