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Encouraging businesses growth by putting more money into circulation.

Explanation: Ap3x

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Elicia Jones

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4y ago

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What monetary policy strategy of the Federal Reserve do these headlines?

Decreasing the money supply to slow the economy


What is the Federal Reserves chief body for monetary policy?

FOMC


What monetary policy strategy of the Federal Reserve do these headlines reflectEconomy Contracting Experts Report Fed Announces Decrease in Interest Rates Banks Request Lowered Reserve Ratio?

These headlines reflect an expansionary monetary policy strategy by the Federal Reserve. By decreasing interest rates and allowing banks to lower their reserve ratios, the Fed aims to stimulate economic activity, encourage borrowing, and boost spending in response to a contracting economy. This approach is typically used during periods of economic downturn to support growth and prevent further decline.


Economic Growth More Rapid Than Predicted Fearing Instability Fed Raises Interest Rates Banks Protest Increased Discount Rate What monetary policy strategy of the Federal Reserve do these headlines re?

Decreasing the money supply to slow the economy


What is an example of monetary policy strategy of the Federal Reserve?

decreasing the money supply to slow the economy


How many federal reserves district are there?

There are 12 federal reserves


How many federal districts are there?

There are 12 federal reserves


What are the major factors that affect long term member bank reserves set by the Federal Reserve Banks?

Over the long term, the major factors affecting member bank reserves are Federal Reserve credit holdings, holdings of international monetary reserves and currency circulation. Additional factors, which do not change greatly over the longer term are Treasury currency outstanding, Treasury deposits, and foreign deposits at Reserve Banks.


Where can banks in need of reserves borrow funds from, either from the Federal Reserve or in the federal funds market?

Banks in need of reserves can borrow funds from either the Federal Reserve or in the federal funds market.


When a plaintiff sues the federal government for monetary damage which court hears the case?

When a plaintiff sues the federal government for monetary damages the Court of Federal Claims hears the case.


The part of the federal government responsible for monetary policy is?

the Federal Reserve System


What do banks do with their excess reserves?

Banks use excess reserves to make loans to customers so that they can make profits on the interest Commercial banks cannot use excess reserves to make common loans. They can only use them to make loans to other banks who may need more required reserves. Excess reserves increase the monetary base but do not enter the M1 or M2 money supply. The only entity that can effect the total excess reserves is the Federal Reserve. When the fed decides to reduce its balance sheet, it will sell assets in the market and reduce an equal amount of excess reserves.