Monetary Policy

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Rachel E


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May 8, 2017








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The regulation of interest rates and money supply allows the board to control currency and stabilize inflation, maintaining price level stability full employment and economic growth (McConnell, 2004). A couple of important assets for the Federal Reserve Bank are securities and liabilities. Securities are what are known as treasury bills, treasury bonds and treasury notes...
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Securities are what are known as treasury bills, treasury bonds and treasury notes. Each of the securities is based on terms i.e., the Treasury bill is a shortterm security, the bonds are longterm and the notes are mid term. The securities act as money that the government has borrowed. Most of the securities were purchased from banks (non federal) which are used to control a banks ability to create money through lending...
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