At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
The federal reserve affects money available for banks to loan by using the reserve requirement tool.
What is the reserve requirement in monetary policy?
Reserve requirement is said as the set-aside funds by the commercial banks that they utilize for meeting their liabilities and instant withdrawal from customers.
Therefore, when Fed increases the rate of reserve requirement then banks need to hold the large amount which reduces their ability to loan more funds. It ultimately reduces the money supply and vice-versa.
Learn more about monetary policy here:
https://brainly.com/question/13926715
We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.