Answer :
The Federal Reserve controls the money supply by:
- raising or lowering the discount rate.
- by raising or lowering the reserve requirement.
- by buying and selling government bonds and treasury bills.
What is Federal Reserve?
It should be noted that the Federal Reserve simply means the bank that oversees the economic affairs in a country.
Here, the Federal Reserve controls the money supply by raising or lowering the discount rate, raising or lowering the reserve requirement, and by buying and selling government bonds and treasury bills.
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