Posted by anita on Saturday, December 13, 2008 at 6:58pm.
Descibe three ways in which federal reserve can change the money supply.
If the federal rserve is going to adjust all of these tools during the economu that is gowing quickly. what changes would they make? if they make changes during econonmic recession, what changes. what changes if any to the current condition of these tools would you make
economic - Ms. Sue, Saturday, December 13, 2008 at 7:21pm
How would you like us to help you with this assignment?
economic - anita, Saturday, December 13, 2008 at 9:18pm
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
economic - Ms. Sue, Saturday, December 13, 2008 at 9:41pm
This information is copied from the site linked below.
"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."
economic - anita, Saturday, December 13, 2008 at 9:56pm
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.
economic - Ms. Sue, Saturday, December 13, 2008 at 9:58pm
I suggest you print the information from the above site and study it carefully, highlighting the parts that would seem to answer this question.
Answer This Question
More Related Questions
- Macroeconomics - Show the changes to the T-accounts for the Federal Reserve and ...
- Economic - 1.The most important tool the Fed has to control the money supply is ...
- Economics - What changes, if any, to the current condition of these tools would ...
- economics - What changes if any to the current condition of these tools would ...
- Political science - If the Federal Reserve is printing money, why is the CPI not...
- Social Studies (Ms. Sue) - What did the Federal Reserve Act do? My answer: The ...
- economics - Help me reword this?? The Fed is organized as a corporation, owned ...
- Macroeconomics - If it looks like a bank won't meet the Federal Reserve Bank's ...
- Economics - Hopefully you can help me and I need this ASAP. I need this by ...
- civics - The Federal Reserve has a number of ways to influence the supply of ...