The Board of Governors in the Federal Reserve System control the discount rate.
It influences bank behavior in order to control the money supply.
discount rate👍🏽
discount rate👍🏽
control state banks
wages for federal employess
It influences bank behavior in order to control the money supply.
discount rate👍🏽
discount rate
discount rate👍🏽
discount rate👍🏽
discount rate👍🏽
control state banks
wages for federal employess
The Federal Reserve
The Federal Reserve controls the money in the United States. The Federal Reserve is a private company not associated with the government.
The Federal Reserve does not have one tool that is more important over another when it comes to monetary policy. There are three tools and all three are equally important. The three tools are open market operations, discount rates, and reserve requirements.
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.