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What FED accomplish by raising or lowering the required reserve ratio?
To manage the economy by increasing or decreasing the amount of loans being made
What best describes the purpose of raising and lowering the required reserve ratio?
To manage the economy by increasing or decreasing the amount of loans being made
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.
How can the reserve requirement for banks be used to slow the economys growth?
Increasing the reserve requirement for banks will make less money available to borrowers and thus slow the economy's growth.
How can the Federal Reserve effectively reduce the money supply in the economy?
The Federal Reserve can effectively reduce the money supply in the economy by implementing policies such as increasing the reserve requirements for banks, selling government securities in the open market to decrease the amount of money in circulation, and raising the federal funds rate to discourage borrowing and spending.
What FED accomplish by raising or lowering the required reserve ratio?
To manage the economy by increasing or decreasing the amount of loans being made
What best describes the purpose of raising and lowering the required reserve ratio?
To manage the economy by increasing or decreasing the amount of loans being made
What best describes the purpose of raising and lower the required reserve ratio?
To manage the economy by increasing or decreasing the amount of loans being made
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.
How can the reserve requirement for banks be used to slow the economys growth?
Increasing the reserve requirement for banks will make less money available to borrowers and thus slow the economy's growth.
How can the Federal Reserve effectively reduce the money supply in the economy?
The Federal Reserve can effectively reduce the money supply in the economy by implementing policies such as increasing the reserve requirements for banks, selling government securities in the open market to decrease the amount of money in circulation, and raising the federal funds rate to discourage borrowing and spending.
What best explains why raising he required reserve ratio results in a decrease in the money supply?
Raising the required reserve ratio means that banks must hold a larger percentage of deposits as reserves and can lend out less money. This reduces the amount of money available for loans and, consequently, decreases the overall money supply in the economy. With fewer loans being issued, there is less money circulating, which can lead to tighter credit conditions and potentially slow down economic activity.
What is Reserve requirement ratio?
The Required Reserve Ratio is the percentage/fraction of required reserves that should be held for every dollar of deposits in a depository institution that is required by the Federal Reserve.
How can open market operations expand the economy?
An open market policy can be used to stimulate the economic activity by increasing the money supply, lowering the interest rates and the change in reserve banks.
Under a fractional reserve banking system the amount of money loaned out can only increase if what happens?
The required reserve ratio is lowered.
What is the motto of Federal Reserve Police?
The motto of Federal Reserve Police is 'Protecting the nation's economy'.
Was Bill Clinton like the economic guardian?
yes, because The President is expected to keep the U.S. economy running smoothly. He plans the federal government's budget, which Congress modifies and sends to the President for approval. The President also appoints the head of the Federal Reserve, which controls the amount of money circulating in the U.S. economy, and yeah
