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Q: If the federal reserve increases the reserve requirement what effect will this have on the nations money supply?
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What is the central nations banking system?

Federal Reserve


The Federal Reserve is divided into how many districts?

The three main tools of the Federal Reserve are: Change the Reserve Requirement Change the Discount Rate Open-Market Operations


In reference to federal reserve policy what are reserve requirement?

the percentage of a bank's total deposits that must be kept in its possession


What is the federal reserve best known for?

For regulating the nations money supply


The of the Federal Reserve has the power to determine what the margin requirement will be for member banks?

Board of Governors


Why did the federal reserve try to regulate margin loans and why were it's efforts only partly successful?

The Federal Reserve tried to regulate margin loans to gain control of margin requirements for stocks bought on margin. Regulation T gives the Federal Reserve the authority to change the percentage of the initial margin requirement for margin stock. Since 1974 the Federal Reserve has not deemed it necessary to adjust the margin requirement


What office of the Federal Reserve has the power to determine what the margin requirement will be for member banks?

ANSWER:board of governors


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.


What is Reserve requirement ratio?

The Required Reserve Ratio is the percentage/fraction of required reserves that should be held for every dollar of deposits in a depository institution that is required by the Federal Reserve.


Which of these officers of the Federal Reserve has the power to determine what the margin requirement will be for member banks?

Board of Governors


How does the federal reserve influence local economics?

The Federal Reserve impacts local economics by impacting local loan rates. The overall movement of rates increases or decreases disposable income and the resultant spending.


Does purchase of government bonds from the public by the federal reserve banks increases commercial banks reserves?

yes