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the deposits of commerical banks will decline

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Q: What will happen when the Federal Reserve buys bonds from the public in the open market and cash in the hands of the public does not change?
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Related questions

The Federal Reserve is divided into how many districts?

The three main tools of the Federal Reserve are: Change the Reserve Requirement Change the Discount Rate Open-Market Operations


What are the three ways the Federal reserve can change the money supply?

The Federal Reserve can change the money supply with 1) open market operations, 2)making changes in the reserve ratio, and 3) making changes in the discount rate. Of the three policies the open market is the most common.


Who are the members of the Federal Reserve Open Market Committee?

The FOMC is the abbreviation of the Federal Open Market Committee within the US Federal Reserve System. The membership of the FOMC is comprised of presidents of the several Federal Reserve Banks in the US and members of the Federal Reserve Board of Governors. By law the FOMC is responsible for deciding what open market transactions the Federal Reserve System will undertake.


Who are the members of the Federal open market committee?

The FOMC is the abbreviation of the Federal Open Market Committee within the US Federal Reserve System. The membership of the FOMC is comprised of presidents of the several Federal Reserve Banks in the US and members of the Federal Reserve Board of Governors. By law the FOMC is responsible for deciding what open market transactions the Federal Reserve System will undertake.


What are the main components in the Federal Reserve banks?

The Federal Open Market Committee. The Federal Open Market Committee (FOMC) consists of seven Federal Reserve Board members and five Federal Reserve bank representatives. The FOMC sets monetary policy by.


What is the function of the Federal Reserve Bank?

The function of the Federal Reserve Bank is responsible for carrying out monetary policy as set by the Federal Open Market Committee. They are 12 Reserve banks


What effect do market operations have on the federal reserve?

they allow the Fed to change the nation's money supply to its most ideal level


What is the Federal Reserve System in charge of what policy?

monetary policy


What is approximate value of funds held in the open market reserve account of the Federal Reserve Bank of New York?

The approximate value of funds held in the open market reserve account of the Federal Reserve Bank of New York is $496 billion.


The Federal Reserve wants to increase the money supply in the US. What is the Federal Reserve likely to do to accomplish this?

buy securities on the open market.


What effect do open market operations have on the Federal Reserve?

they allow the Fed to change the nation's money supply to its most ideal level


What three parts make up the Federal Reserve?

The 12 Federal Reserve banks are the regional banks from each of the 12 Federal Reserve districts. The Board of Governors of the Federal Reserve is the seven-person governing body of the Federal Reserve System. The Federal Open Market Committee decides on monetary policy, and consists of the seven members of the Board of Governors plus 5 of the 12 regional bank presidents.