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Essay

Tools of Monetary Policy

Essay specific features

 

Issue:

Business

 

Written by:

Lorraine K

 

Date added:

August 14, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 687

 

Was viewed:

2393 times

 

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Essay content:

The reserve requirement may not seem significant but it does play an important role in our economy. A low percentage rate requires the banks to keep less money on hand allowing for more loans to be made which in turn fuels the economy. A high percentage rate requires the bank to keep more money on hand...
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This makes it harder for people to receive loans and causes a recession (Federal Reserve Bank of Richmond, 2006). Thankfully the Federal Reserve does not change to reserve requirements very often. Right now the reserve requirement is at ten percent and has not been changed since it was lowered in April of 1992 (Federal Reserve Bank of New York)...
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General issues of this essay:
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