Question

The Fed ensures that enough currency and coins are circulating through the financial system to meet public demand, increasing currency around the Christmas shopping season and reducing it in January.

(True/False)

Answer 1

The Fed ensures enough currency and coins are circulating to meet public demand, increasing it during Christmas shopping season and reducing it in January.

Step-by-step explanation:

True.

The Federal Reserve, commonly referred to as the Fed, ensures that enough currency and coins are circulating through the financial system to meet public demands. It increases the amount of currency available in banks around the Christmas shopping season when there is a higher demand for cash, and reduces it again in January.