Use open-market operations
The Federal Reserve could decrease the money supply by raising interest rates, selling government securities, or increasing reserve requirements for banks.
open market operations
the board sell securities and increase discount rates
The Federal Reserve wants to affect the money supply because the amount of money on the street at any given time affects the overall value of the individual dollar.
you didn't put any choices but a sale of bonds or raising interest rates would slow economic growth.
The Federal Reserve could decrease the money supply by raising interest rates, selling government securities, or increasing reserve requirements for banks.
open market operations
monthly audits & use open-market operation.
The Federal Reserve has its own committee who oversees the actions of its members. There are twelve banks across the country implemented by the Federal Government to watch over spending and study current financial patterns.
During the years 1928 and 1929, the Federal Reserve took actions to raise interest rates in an effort to curb excessive speculation in the stock market and prevent inflation. These actions were aimed at stabilizing the economy and preventing a potential financial crisis.
the board sell securities and increase discount rates
The Federal Reserve wants to affect the money supply because the amount of money on the street at any given time affects the overall value of the individual dollar.
you didn't put any choices but a sale of bonds or raising interest rates would slow economic growth.
Woodrow Wilson signed into act Federal Reserve Act of 1913, which was sold as a way to control wild fluctuations in money supply therefore preventing depressions and economic turmoil. What the public was not told was that the Federal Reserve was not part of the U.S. Government, but a privately owned central bank.
Three federal actions that decrease the money supply include raising the federal funds rate, which makes borrowing more expensive and reduces spending; selling government securities in the open market, which withdraws cash from the banking system; and increasing reserve requirements for banks, which limits the amount of money they can lend. These measures are typically employed to combat inflation and stabilize the economy.
It is important for the Fed to be independent because much their open market operations (i.e. raising or powering short term interest rates) tend to be very politically charged. The effects of the operations have long lead time (up to six month or more) that don't lend themselves to the political whim.AnswerThe activities of the Federal Reserve are not only independent of all government oversight, they are secret. This is important to the Federal Reserve because they have the power to cause economic chaos at will. If they were subject to government oversight they could not do this. For this reason the Federal Reserve is unconstitutional and the people should demand that its charter be revoked.
They both wanted to put the scandal nehind them