The Federal Reserve System controls the size of the A) tax supply. B) money supply. C) demand supply. D) production supply.

B) money supply is the correct answer.

Explanation:

The Federal Reserve System controls the size of the money supply.

The Federal Reserve is the United States central bank that regulates inflation by maintaining credit and controls the money supply.

The Federal Reserve System as formed by congress on 23rd December in the year 1913 wants the central regulator of the financial system to alleviate monetary crises and to provide the nation safer and stable monetary system.

The correct answer is choice b.

The Federal Reserve System is the central banking system of the United States. Known as the "Fed," it was established in 1913 with three primary purposes. They are maximizing employment, stabilizing prices, and moderating long-term interest rates.