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The Board of Governors in the Federal Reserve System control the discount rate.

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Which statement is true about the Federal Reserve discount rate?

It influences bank behavior in order to control the money supply.


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👍🏽


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👍🏽


What is the relationship between the discount rate and the federal funds rate in the context of monetary policy?

The discount rate is the interest rate at which banks borrow money directly from the Federal Reserve, while the federal funds rate is the interest rate at which banks lend money to each other overnight. The Federal Reserve uses these rates to influence the overall economy. Typically, the discount rate is higher than the federal funds rate, and changes in one rate can impact the other. When the Federal Reserve wants to encourage borrowing and spending, it may lower the discount rate and federal funds rate to make it cheaper for banks to borrow money. Conversely, when the Federal Reserve wants to slow down the economy and control inflation, it may raise these rates to make borrowing more expensive.


Which of the following factors does not reduce the Federal Reserve's control of the money supply?

The factor that does not reduce the Federal Reserve's control of the money supply is the ability to set reserve requirements for banks.

Related Questions

Which statement is true about the Federal Reserve discount rate?

It influences bank behavior in order to control 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👍🏽


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


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👍🏽


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👍🏽


What is the relationship between the discount rate and the federal funds rate in the context of monetary policy?

The discount rate is the interest rate at which banks borrow money directly from the Federal Reserve, while the federal funds rate is the interest rate at which banks lend money to each other overnight. The Federal Reserve uses these rates to influence the overall economy. Typically, the discount rate is higher than the federal funds rate, and changes in one rate can impact the other. When the Federal Reserve wants to encourage borrowing and spending, it may lower the discount rate and federal funds rate to make it cheaper for banks to borrow money. Conversely, when the Federal Reserve wants to slow down the economy and control inflation, it may raise these rates to make borrowing more expensive.


Which of the following factors does not reduce the Federal Reserve's control of the money supply?

The factor that does not reduce the Federal Reserve's control of the money supply is the ability to set reserve requirements for banks.


The fractional reserve system allows the federal reserve to?

control state banks


Why did the Federal Reserve increase interest rates?

The Federal Reserve increased interest rates to control inflation and encourage saving and investment.


Why did the Federal Reserve raise interest rates?

The Federal Reserve raised interest rates to control inflation and encourage saving and investment.


The federal reserve board has substantial influence or control over?

wages for federal employess