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Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.
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∙ 12y ago
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What government agency conducts monetary policy in the United States?
The Federal Reserve is responsible for managing the money supply in the U.S.
Efforts by the federal reserve system to control the money supply and interest rates are known as what?
Monetary Policy
Which statement is true about the Federal Reserve discount rate?
It influences bank behavior in order to control the money supply.
The federal reserve can control the supply of money by adjusting the interest rate it charges the borrowers what is the rate called?
discount rate👍🏽
The Federal Reserve can control the supply of money by adjusting the interest rate it charges the borrowers. What is this rate called?
discount rate👍🏽
Which of these is primarily responsible for the control of the money supply in the US?
The Federal Reserve
What government agency is responsible for the control of money supply?
The Treasury
What government agency conducts monetary policy in the United States?
The Federal Reserve is responsible for managing the money supply in the U.S.
Efforts by the federal reserve system to control the money supply and interest rates are known as what?
Monetary Policy
Which statement is true about the Federal Reserve discount rate?
It influences bank behavior in order to control the money supply.
What is the control of the supply of money by adjusting the interest rate it charges the borrowers by the Federal Reserve?
discount rate👍🏽
What is the rate called where The Federal Reserve can control the supply of money by adjusting the interest rate it charges the borrowers.?
discount rate
What is is the purpose of the Federal reserve bank?
The Federal Reserve Bank manages the U.S. economy by controlling the money supply.
The federal reserve can control the supply of money by adjusting the interest rate it charges the borrowers what is the rate called?
discount rate👍🏽
The federal reserve can control the supply of money by adjusting the interest rate it charges the borrowers. What is the rate called?
discount rate👍🏽
The Federal Reserve can control the supply of money by adjusting the interest rate it charges the borrowers. What is this rate called?
discount rate👍🏽
When the federal reserve decreases the money supply it generally does by selling bonds true or false?
It is true that when the Federal Reserve decreases the money supply it generally does by selling bonds. When the Federal Reserve sells bonds it pushes prices down and increases rates.
