Posted by anita on Saturday, December 13, 2008 at 6:58pm.
How would you like us to help you with this assignment?
I am trying to pick this all on paper in the first part of the question three ways in which the federal reserve can change the money supply
This information is copied from the site linked below.
http://www.voanews.com/specialenglish/archive/2006-02/2006-02-17-voa1.cfm
"The Federal Reserve could continue to raise target interest rates."
"The Federal Reserve has two other tools. One is called the discount window. This involves three special interest rates that the Fed really does control. Banks can borrow at these rates for short periods. The program serves large or small banks as well as those with seasonal needs, like agricultural banks.
"Finally, the central bank can change the amount of money that banks are required to keep with the Federal Reserve itself. Increasing the reserves reduces the money supply, since it leaves banks with less money to lend."
thanks this really helps me.
What changes you think that the federal reserve would make in a growing econonmy. what changes if any benefits/drawback of this strategy.
I suggest you print the information from the above site and study it carefully, highlighting the parts that would seem to answer this question.
Related Questions
Macroeconomics - Show the changes to the T-accounts for the Federal Reserve and ...
Political science - If the Federal Reserve is printing money, why is the CPI not...
economics - Help me reword this?? The Fed is organized as a corporation, owned ...
business - are all banks part of the federal reserve system? As Fedaral reserve ...
Economics - Hopefully you can help me and I need this ASAP. I need this by ...
the federal reserve - How does the Federeal Reserve control the amount of money ...
Economic - 1.The most important tool the Fed has to control the money supply is ...
economics - Federal Reserve lowers reserve requirment to 1.25% what wil happen ...
Macroeconomics - 1. Consider the economic situation in the U.S since 2008 and ...
macroeconomics - 1. Consider the economic situation in the U.S since 2008 and ...
For Further Reading
