The supply of money is determined by
A)the price level.
B)the Treasury and Congressional Budget Office.
C)the Federal Reserve System.
D)the demand for money.

Question

Quizplus · Accepted Answer

The supply of money is determined by the Federal Reserve System, which is responsible for controlling the monetary policy of the country. They can influence the supply of money in circulation by adjusting interest rates, buying or selling government securities, and setting reserve requirements for banks. The Treasury and Congressional Budget Office may have some influence over the supply of money through fiscal policy decisions, but ultimately it is the Fed that controls the money supply. The price level and demand for money are factors that can impact the overall economy, but they alone do not determine the supply of money.

The Supply of Money Is Determined by