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Does the fedeeral reserve have complete control over the money supply at all times?
Wiki User
∙ 13y ago
No. Genrally, assuming this idea is just for simplification of money models. Other sources can create or lose currency. For example, banks can multiply money by giving out loans. People lose money often and accidently. People changing their investment in assets can also affect the level of money (since money is not just currency). A larger list of changers is probably not important, though, since most factors have little influence on the money supply. By far, the federal reserve is the most important part of the money supply.
Wiki User
∙ 13y ago
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Should the federal reserve control the money supply?
Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.
Efforts by the federal reserve system to control the money supply and interest rates are known as what?
Monetary Policy
Which statement is true about the Federal Reserve discount rate?
It influences bank behavior in order to control the money supply.
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.
The federal reserve can control the supply of money by adjusting the interest rate it charges the borrowers what is the rate called?
discount rate👍🏽
Should the federal reserve control the money supply?
Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.
Which of these is primarily responsible for the control of the money supply in the US?
The Federal Reserve
What government agency is responsible for the control of money supply?
The Treasury
Efforts by the federal reserve system to control the money supply and interest rates are known as what?
Monetary Policy
Which statement is true about the Federal Reserve discount rate?
It influences bank behavior in order to control the money supply.
What is the control of the supply of money by adjusting the interest rate it charges the borrowers by the Federal Reserve?
discount rate👍🏽
What is the rate called where The Federal Reserve can control the supply of money by adjusting the interest rate it charges the borrowers.?
discount rate
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.
The federal reserve can control the supply of money by adjusting the interest rate it charges the borrowers what is the rate called?
discount rate👍🏽
The federal reserve can control the supply of money by adjusting the interest rate it charges the borrowers. What is the rate called?
discount rate👍🏽
The Federal Reserve can control the supply of money by adjusting the interest rate it charges the borrowers. What is this rate called?
discount rate👍🏽
What does a business have if they have complete control of the supply of a product?
A business that you have described here could be called a monopoly.
