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How does the federal reserve reducing the interest rate affect the bond market?
Wiki User
∙ 13y ago
The cost of borrowing money.^%
Wiki User
∙ 13y ago
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Why does the Federal Reserve alter monetary policy?
The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.
What are the factors that affect the economic growth?
Things that can affect economic growth include: interest rates, the political environment, weather and a host of other things. The Federal Reserve sets monetary policies to help combat these factors.
What industry did the federal act mainly affect?
The Federal Reserve Act mainly affected the banking industry.
What are three ways the federal reserve can affect the money supply?
It can put a reccesion or inflation.
Which of these can affect the economy by increasing or decreasing the money supply?
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
What industry did the federal reserve act mainly affect-?
The Federal Reserve Act mainly affected the banking industry.
What industry did the federal reserve mainly affect?
The Federal Reserve Act mainly affected the financial institutions across America. It also affected the bankers, lenders, credit bureaus, and especially the stock markets.
What industry did the federal reserve act affect?
The Federal Reserve Act mainly affected the financial institutions across America. It also affected the bankers, lenders, credit bureaus, and especially the stock markets.
What industry did federal Reserve act mainly affect?
The Federal Reserve Act mainly affected the financial institutions across America. It also affected the bankers, lenders, credit bureaus, and especially the stock markets.
When the federal reserve raises interest rates how does it affect the economy?
it increase their customers money by a greater margin than before so it may help the economy start running again so people will start buying again
How did the new federal reserve system affect banks?
it created 12 new banks giving them banking power
What does GDP affect?
GDP is a measure, a better question is what affects GDP. GDP is, specifically a measure of a country's production. A higher GDP signals growth, efficient production, it may affect policy decisions, it may affect Federal Reserve decisions (money supply and interest rate, target inflation rate etc.)
