Respuesta :
The Fed would raise the reserve requirements for banks to decrease the money supply using the reserve requirements,
By reducing the reserve requirements for banks, the Fed can expand the money supply by enabling banks to make more loans. On the other hand, the Fed can reduce the amount of money in circulation by increasing the reserve requirements for banks. The amount of money in the financial system can be increased or decreased by central banks through a variety of techniques.
Monetary policy is the term used to describe these acts. Although the Federal Reserve Board, also known as the Fed, has the authority to manufacture paper money at its discretion in an effort to boost the economy's supply of cash, this is not the method employed, at least not in the United States.
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