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Through which tool does the Federal Reserve affect money available for banks to loan?

2 Answers

6 votes
hm..history questions like this are my weak point but i would probably say the reserve requirement?
answered
User Rafael Soufraz
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4 votes

Answer:

Reserve requirement, is the right answer.

Step-by-step explanation:

A regulation of the central bank used by most but not all of the central banks of the world, that places the minimum volume of reserves a commercial bank must be held, is known as the reserve requirement. The minimum reserve is usually prepared by the central bank to be no limited than a particularized % of the amount of collateral liabilities the commercial bank owes to its clients.

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User Mario Campa
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