By increasing the federal funds rate, the Federal Reserve is effectively attempting to decrease the quantity of money that is available for purchases. The cost of getting money rises as a result. On the other hand, the money supply increases when the Federal Reserve reduces the federal funds rate.
What is Federal Reserve System?
The United States of America's central banking system is called the Federal Reserve System. On December 23, 1913, the Federal Reserve Act, which founded it, was passed. the necessity of centralised monetary regulation in order to stop financial crises after a series of financial panics.
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