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Business, 20.08.2019 19:20 Bigbabybrudis

"the fed can perfectly control the amount of reserves in the system." is this statement true, false, or uncertain? explain your answer. a. true. the fed is able to effectively control the monetary base and the amount of reserves through open market operations. b. false. a shift from deposits to currency will affect the amount of reserves, and since other players are involved in this process, the fed ultimately cannot control the level of reserves in the system. c. true. because the fed sets the required reserve ratio for banks, it effectively has control over the amount of reserves in the banking system. d. uncertain. the amount of control the fed has over reserves is variable, as it often depends on current economic conditions.

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