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The Federal Reserve raises the rate in order to encourage banks to lend less.
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∙ 6y ago
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What is the ultimate impact on the money supply of an increase in the discount rate?
The increase in the discount rate will cause the money supply to reduce in growth
How does raising the discount rate affect the money supply?
Decreases the money supply
In which three ways does the Fed manage the country's money supply?
-open-market operations (purchase or sale of government securities) -change the discount rate -change reserve requirements
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 is the ultimate impact on the money supply of an increase in the discount rate?
The increase in the discount rate will cause the money supply to reduce in growth
How does raising the discount rate affect the money supply?
Decreases the money supply
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
In which three ways does the Fed manage the country's money supply?
-open-market operations (purchase or sale of government securities) -change the discount rate -change reserve requirements
What is the most likely effect of the Federal Reserve lowering the discount rate on overnight loans?
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in 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👍🏽
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👍🏽
Describe the effect that The Fed raises the discount rate from 5 percent to 10 percentwill have on the money supply?
If the Fed raises the discount rate from five percent to ten percent, there would be less money supply. This is because it is a contractionary monetary policy.
What most likely effect of the Fed lowering the discount rate on overnight loans?
An increase in the money supply
What most likely effects the Fed lowering the discount rate on overnight loans?
An increase in the money supply
