Federal Reserve and Money Supply

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Issue:

Business

 

Written by:

Anonymous

 

Date added:

November 17, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1144

 

Was viewed:

9085 times

 

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Essay content:

Finally, I will discuss the current condition of the economy in the United States, and what tools I would suggest using at the next meeting of the Federal Reserve based upon the data and trends. I. Three Ways in which the Federal Reserve can change the Money Supply: The three methods used by the federal reserve [Fed] to change the money supply in the country are ? Open Market Operations; and, ? Changing Reserve Limits on Banks; and, ? Changing the discount rate to banks...
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(pp. 646) In Open Market Operations, the FED gives and takes back available money to the economy through its purchase of government bonds. When the FED buys bonds, such as a 100 million dollar bond, that money goes into the bond seller's bank. The banking system can then loan that amount, minus the reserve requirement, to other consumers...
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