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What actions can the federal Reserves can take when the economy is facing a downturn?
Wiki User
∙ 9y ago
If we don't end the Fed nothing will ever change. If part of their mission is to ensure full employment, they are failing. Congress is afraid of Bernanke. Full employment is a thing of the past as just industrial efficency and technology have replaced people. We are headed for a social revolution because the staus quo must change. We have to stop trying to value everything in terms of our worthless money. How do you think unemployed people feel when they read the Fed says there's too much money in the system and has to be withdrawn for fear of inflation? Well obviously we have a distribution problem. In a supposed land of plenty, why do some have so much and others so little? I keep wondering what will happen if Congress lets unemployment benefits expire for the millions not working. I also believe the logic behind the inflation concept is flawed. That inflation occurs because it is manipulated to happen that way.
Wiki User
∙ 13y ago
Wiki User
∙ 9y agoThere are several actions that the Federal Reserves can take when the economy is facing a downturn. These actions include monitoring banks more closely and lowering interest rates on home loans.
Wiki User
∙ 9y agoThe Federal Reserve can raise or lower the prime lending rate depending on the economy. In the case of a downturn, they could take steps to lower the prime lending rate to boost the economy.
Wiki User
∙ 9y agoIf you are worried that the economy is failing, you would start selling your stocks and bonds. This is because you will have lost security in the economy and fear losing all your investments.
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As chairperson of the Federal Reserve, you are worried that the economy is facing a downturn List the many actions you can take using the Federal Reserve?
Use open-market operations
What policy relates to this statement It is the responsibility of the Federal Reserve System to contribute to the strength and vitality of the US economy.?
The Federal Reserve Act's policy is to consider the American economy above all official decisions. Founded in December 1913, it is what balances if not drives the Federal Reserves System.
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.
When the Federal government uses taxation and spending actions to stimulate the economy it is conducting?
fiscal policy
What role does the reserve bank play in the economy?
The federal reserve bank plays an important roll with (de)/(in)flation, housing the IRS and Treasuries money. When money is granted to a state by the federal government, the money is handed out by the Federal Reserves in the state in which the money was granted.
As chairperson of the Federal Reserve, you are worried that the economy is facing a downturn List the many actions you can take using the Federal Reserve?
Use open-market operations
How many federal reserves district are there?
There are 12 federal reserves
When the federal governent uses taxation and spending actions to stimulate the economy it is conducting?
fiscal policy
When the Federal government uses taxation and spending actions to stimulate the economy it is conducting?
fiscal policy
What policy relates to this statement It is the responsibility of the Federal Reserve System to contribute to the strength and vitality of the US economy.?
The Federal Reserve Act's policy is to consider the American economy above all official decisions. Founded in December 1913, it is what balances if not drives the Federal Reserves System.
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 role does the reserve bank play in the economy?
The federal reserve bank plays an important roll with (de)/(in)flation, housing the IRS and Treasuries money. When money is granted to a state by the federal government, the money is handed out by the Federal Reserves in the state in which the money was granted.
How many federal districts are there?
There are 12 federal reserves
Why did the federal surplus disappear after 2001?
an economic downturn, costs associated with the war on terrorism, and a cut in federal taxes
How does the Federal Reserve Board fight inflation or what actions does it take to combat a bad economy?
the board sell securities and increase discount rates
What powers does the president have durning a great depression?
Unlike war, the powers of the president do not change in an economic downturn. If you mean what can the president do that directly affects the economy, the main thing would be declare a bank holiday, which FDR did to stop the run on the banks. After the creation of the FDIC the runs on the banks were not needed as money was insured by the federal government. The person who really controls the economy especially during an economic downturn is the Federal Reserve chairman, in this case Ben Bernanke. He or she can raise or lower interest rates in order to increase the money supply or restrict it depending on what is need.
What powers does the constitution give to the the state but not the federal government?
Reserves
