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Role of Federal Reserve
Essay specific features
Written by:
Adam F
Date added:
September 18, 2013
Level:
University
Grade:
A
No of pages / words:
2 / 464
Was viewed:
6821 times
Rating of current essay:
Essay content:
It would follow into a situation where businesses and consumers would also cut back on spending ("Freedom Investments," 2002). By increasing its reserve requirement Federal Reserve can also decrease funds that are available for borrowing which could force the economy to slow down. Conducting open market operations Fed can control currency flow...
displayed 300 characters
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Conducting open market operations Fed can control currency flow. When it sells government bonds to other banks it decreases amount of currency that is in circulation.
To speed up the economy Federal Reserve would decrease its discount rate and reserve requirement. It would also purchase government bonds so banks have more funds available for borrowing...
displayed 300 characters
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