0
What does the Federal Reserve Bank of New York do to decrease the amount of stock purchased on margin?
ChuckSiata
Buy Back
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What does A tight policy means?
the Federal Reserve wants to decrease the amount of money in the economy
What does a tight money policy means .?
the Federal Reserve wants to decrease the amount of money in the economy
Which action can the Federal Reserve take to pursue a tight-money policy?
decrease the amount of money in the economy
What method is used by Federal Reserve Banks to determine the amount of credit they extend?
Since the Federal Reserve Banks are not operated for profit, profit considerations have no effect on the amount of credit they extend. With that said, the amount of credit extended is determined primarily by the monetary policy being pursued in the public interest. These monetary policies will either increase or decrease the availability of bank reserves, and thus ultimately affect the amount of credit that can be extended at any particular point in time.
How does overspending of government affect the fluctuation of exchange rate?
The Government borrows money from the Federal Reserve Bank in order to pay for the budget deficit. The federal reserve then issues 1, 3, 5, and 10 year bonds which can be purchased by anybody in the world. The value of the bonds is determined by the trading which occurs in the bond market. The fed's selling of bonds does not directly effect the exchange rate. The total amount of dollars in circulation is not effected by this as the sale price of the bonds covers the deficit. If people outside of the US buy these bonds then they will decrease the amount of dollars in their own country with will raise the value of the dollar there. In reality this is not often the case because a weaker dollar is often the reason why the bonds are purchased by foreigners. Do not confuse the Federal Reserve's printing of new currency to mach the target rate with the financing of the deficit.
Who has the power to change the total amount of reserves in the banking system?
Federal Reserve System
How is the amount of money in circulation determined?
It's deterimed by the Federal Open Market Committee, which is part of the Federal Reserve System.
Purpose of the legal reserve?
The legal reserve is designated as the set amount of federal deposits utilized as safe and secure assets created to meet liquidity requirements for the U.S. Federal Bank.
Which of these is an example of how the Federal Reserve would slow the economy to hold off inflation?
One way the Federal Reserve would slow the economy to hold off inflation would be to increase the amount of money banks must have on reserve.
How does the Federal Reserve System controls the fiscal policy of the US?
The fiscal agents of the U.S Treasury is the federal reserve system. They control and monitor the amount of money the private bank has at disposal for paying debts and lending out.
How does the federal reserve system control the fiscal policy of the US?
The fiscal agents of the U.S Treasury is the federal reserve system. They control and monitor the amount of money the private bank has at disposal for paying debts and lending out.
How would the Federal Reserve implement an expansionary monetary policy?
They would raise interest rates, so it would be harder for people to borrow money, consume, and spend. Raising interest rates will decrease the amount of money in circulation, so help prevent inflation.
