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Essay

monetary policy

Essay specific features

 

Issue:

Business

 

Written by:

Thomas L

 

Date added:

October 21, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

6 / 1448

 

Was viewed:

1728 times

 

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Essay content:

The Second tool the Fed uses to control the money supply is the Required Reserve Ratio (RRR). The Fed mandates a percentage (ratio) of deposits that bank are required to hold in reserves and not lend out. The Third tool the Fed uses to control the money supply is Open Market Operations (OMO). OMO includes Treasury Bills (T-bills), bonds, securities, and other instruments sold to investors by the Fed...
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OMO includes Treasury Bills (T-bills), bonds, securities, and other instruments sold to investors by the Fed. The Spread between the DR and the FFR The money supply is affected by the by spread between the DR and the FFR If the Fed DR is lower than the FFR charged by other banks, it is more probable that banks will borrow from the Fed...
displayed 300 characters

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