Role of Federal Reserve

Essay specific features

 

Issue:

Business

 

Written by:

Adam F

 

Date added:

September 18, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 464

 

Was viewed:

6741 times

 

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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...
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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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