What methods could the Federal Reserve use to stabilize the economy?(1 point)
Responses
The Federal Reserve provides loans to banks that cannot obtain loans to prevent shortages in cash.
.
The Federal Reserve prevents banks from lending who do not have the reserves to lend.
The Federal Reserve issues money to individuals to stimulate the economy.
The Federal Reserve increases interest rates to incentivize banks to lend.
The Federal Reserve can also conduct open market operations by buying or selling government securities to control the money supply.
Additionally, the Federal Reserve can adjust reserve requirements for banks to control the amount of money banks can lend.
Furthermore, the Federal Reserve can provide guidance or hints about future monetary policy decisions to influence market expectations.
Lastly, the Federal Reserve can use unconventional monetary policy tools, such as quantitative easing, to stimulate the economy during times of crisis.