Respuesta :
This tends to reduce the amount of money in circulation lowering inflation and slowing economic activity.
Changes in Federal Funds Rates can affect the US Dollar. When the Federal Reserve raises the federal funds rate, it usually raises interest rates across the economy. Higher yields are attracting investment capital from foreign investors seeking higher yields on bonds and interest-rate products.
Sell bonds when the Fed raises the Federal Funds rate. Banks and non-banks send checks to the Fed to buy these bonds. This reduces bank reserve levels and requires banks to lend less to meet the required reserve ratio. The Federal Funds Rate influences interest rates for many consumers including deposits bank loans credit cards and variable-rate mortgages.
Learn more about Federal Funds Rates here:- https://brainly.com/question/1354434
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