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Essay

Macroeconomic Impact on Business Operations

Essay specific features

 

Issue:

Business

 

Written by:

Margaret E

 

Date added:

July 5, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

7 / 1700

 

Was viewed:

1636 times

 

Rating of current essay:

 
Essay content:

The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy (Author Unknown, 2006 ¶1). The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements. The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations...
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Using the three tools, the Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks and in this way alters the federal funds rate. The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight...
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General issues of this essay:
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