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When the FED offers banks payment in exchange for leaving money at the FED instead of

lending it, they are manipulating which tool of monetary policy?

1 Answer

10 votes

Answer: The Federal Reserve, America's central bank, is responsible for ... When the economy is faltering, the Fed can use these tools to enact expansionary monetary policy. ... supply by removing cash from the economy in exchange for bonds. ... the bank is left with less money to lend out on each dollar deposited.

Step-by-step explanation:

use spinbot.com if its for a essay or sm

answered
User Frno
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