Question

The Federal Reserve can affect the country’s money supply by

hiring more employees.
influencing interest rates.
opening new banks.
printing more money.

Answer 1

influencing interest rates.

Explanation: The Fed uses tools like open-market operations, the discount rate, and reserve requirements to influence interest rates and thereby the money supply. It does not directly print currency (the Treasury prints bills), open banks, or change the money supply by hiring more employees.