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Federal Reserve and Money Supply
Essay specific features
Written by:
Anonymous
Date added:
November 17, 2013
Level:
University
Grade:
A
No of pages / words:
5 / 1144
Was viewed:
9068 times
Rating of current essay:
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...
displayed 300 characters
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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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