Monetary Policy

Essay specific features

 

Issue:

Business

 

Written by:

Joan V

 

Date added:

May 23, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1359

 

Was viewed:

2393 times

 

Rating of current essay:

 
Essay content:

The discount rate is the rate at which banks can borrow money from the Federal Reserve. The rate rarely changes; its purpose is security for banks to avoid insufficient funds. The simulation provided an example of how the spread between the federal funds rate and the discount rate can affect the trend banks use when borrowing...
displayed 300 characters

Custom written essay

All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $11.99/page

Order custom paper

Full essays database

You get access to all the essays and can view as many of them as you like for as little as $28.95/month

Buy database access

Order custom writing paper now!

  • Your research paper is written
    by certified writers
  • Your requirements and targets are
    always met
  • You are able to control the progress
    of your writing assignment
  • You get a chance to become an
    excellent student!

Get a price guote

 
 

If the discount rate interest is lower than the federal funds ratio banks are more inclined to shift their borrowing to the Federal Reserve which increases the total amount of money in circulation and is positive on the economy. However if the discount rate is higher than the federal funds rate banks will lend to other banks making no impact on the money supply...
displayed next 300 characters

General issues of this essay:

Related essays: