0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What accurately describes how lowering the required reserve ratio increases the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
Which type of policy is controlled by the Board of Governors of the Federal Reserve?
Well, if by "the federal reserve", you mean the federal reserve bank, then there are two types of policies. These are expansionary and contractionary monetary policies. In times of recession, The FED uses expansionary policies such as increasing the money supply by buying bonds, lowering the discount rate, and lowering reserve requirements.In times of over expansion, The FED uses contractionary policies such as decreasing the money supply by selling bonds, raising the discount rate, and raising reserve requirements.
What is the term for the federal reserve buying and selling of the us treasury bonds?
fiscal policy
How might the federal reserve to an overheated economy or boom?
The Federal Reserve respond to an overheated economy or boom by selling bonds in the open market.
Why is the money supply decreased when the Fed sells some of its Treasury bonds?
Selling bonds decreases the amount of money that bondholders have in the bank.
When the federal reserve decreases the money supply it generally does by selling bonds true or false?
It is true that when the Federal Reserve decreases the money supply it generally does by selling bonds. When the Federal Reserve sells bonds it pushes prices down and increases rates.
What accurately describes how lowering the required reserve ratio increases the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
How can you use the federal reserve to help the economy?
By selling bonds in an open market.
Which of the following will increase commercial bank reserves?
deposits and selling of bonds back to the federal reserve.
Which type of policy is controlled by the Board of Governors of the Federal Reserve?
Well, if by "the federal reserve", you mean the federal reserve bank, then there are two types of policies. These are expansionary and contractionary monetary policies. In times of recession, The FED uses expansionary policies such as increasing the money supply by buying bonds, lowering the discount rate, and lowering reserve requirements.In times of over expansion, The FED uses contractionary policies such as decreasing the money supply by selling bonds, raising the discount rate, and raising reserve requirements.
What is the term for the federal reserve buying and selling of the us treasury bonds?
fiscal policy
What is the term for the federal reserve's' buying and selling of us treasury bonds?
fiscal policy
How might the federal reserve to an overheated economy or boom?
The Federal Reserve respond to an overheated economy or boom by selling bonds in the open market.
The Federal Reserve's procedure of purchasing or selling government bonds is an example of .?
open-market operations
What does not describe the selling of US treasury bonds by the federal reserve?
It releases new money into economy
Why is the money supply decreased when the Fed sells some of its Treasury bonds?
Selling bonds decreases the amount of money that bondholders have in the bank.
Which of the following does not describe the selling of U.S. Treasury bonds by the Federal Reserve?
it is part of expansionary monetary policy
