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Q: How could the board of governors of the federal reserve system affect the economy?
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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.


Why does the Federal Reserve alter monetary policy?

The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.


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.


When the federal reserve raises interest rates how does it affect the economy?

it increase their customers money by a greater margin than before so it may help the economy start running again so people will start buying again


What industry did the federal act mainly affect?

The Federal Reserve Act mainly affected the banking industry.


How do the federal reserves actions influence the money supply?

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.


What does the board of governors do within the fed?

The Fed can use three tools to carry out its monetary policy goals: the discount rate, reserve requirements and open market operations. All three affect the amount of funds in the banking system. The discount rate is the interest rate Reserve banks charge banks for short-term loans. Discount rate changes are made by Reserve banks and the Board of Governors. Reserve requirements are the portions of deposits that banks must hold in reserve, either in their vaults or on deposit at a Reserve bank. The Board of Governors has sole authority over changes to reserve requirements. By far, the most frequently used tool is open market operations, which involve the buying and selling of U.S. government securities. As we learned earlier, this tool is directed by the FOMC and carried out by the Federal Reserve Bank of New York. We'll have to get technical to explain how this works.


What are three ways the federal reserve can affect the money supply?

It can put a reccesion or inflation.


How does the federal reserve reducing the interest rate affect the bond market?

The cost of borrowing money.^%


What industry did the federal reserve act mainly affect-?

The Federal Reserve Act mainly affected the banking industry.


What industry did the federal reserve act affect?

The Federal Reserve Act mainly affected the financial institutions across America. It also affected the bankers, lenders, credit bureaus, and especially the stock markets.


What industry did the federal reserve mainly affect?

The Federal Reserve Act mainly affected the financial institutions across America. It also affected the bankers, lenders, credit bureaus, and especially the stock markets.