0
The factors that affect money supply are the required reserves for bank rates. Money is mostly created by loans, therefore the shadow banking system is the one that creates the loans. The federal banking system does not control the shadow banking system, so therefore there are no reserve requirements.
Dallas Weissnat
Add your answer:
Earn +20 pts
What are the factors that affect labor supply?
There are many factors that affect labor supply. In most cases, this will be determined by the wage rate of the particular industry and the production level expected among other factors.
Which factors affect money market interest rates?
Supply and Demand.The interest rate is simply the price of money. Confidence, economic conditions etc.are all relevant but these are all just factors combining to form S+D
What factors affect falls in Indian money value?
The most influential factors are:The increased demand of dollarSlowdown in GDP growthInflation
What factors affect the globalization of an business?
Various factors can affect the globalization of a business. For example, cultural factors may affect how viable a product is in a certain location.
What is wrong when there is so much money in circulation?
The problem is that money is based on supply and demand principles. When you have too much supply it devalues the money. If there is excess supply it reduces demand. This usually results in inflation.
How the the tools used by the Federal Reserve to control the money supply influence the money supply and in turn affect macroeconomic factors?
The economy of a country is affected by an infinite number of factors.
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
How does raising the discount rate affect the money supply?
Decreases the money supply
What are the factors that affect the supply?
There are many factors that affect labor supply. In most cases, this will be determined by the wage rate of the particular industry and the production level expected among other factors.
Factors that affect the location of a business?
Availability of raw materials - resources , sufficient power supply , large labor supply , money for investment in industries , efficient transportation system, closeness to markets, cities, towns, and incentives to attract industry are factors that affect industry location
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 are the factors that affect labor supply?
There are many factors that affect labor supply. In most cases, this will be determined by the wage rate of the particular industry and the production level expected among other factors.
Can factors that effect demand also affect supply?
no
How the non price price factors affect demand and supply?
By doing the factors..
What factor affect price?
What factors usually affect pricing?
Explain how different monetary policies affect the money supply in the economy?
"Explain how different monetary policies affect the money supply in the economy?"
Which factors affect money market interest rates?
Supply and Demand.The interest rate is simply the price of money. Confidence, economic conditions etc.are all relevant but these are all just factors combining to form S+D
