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Why did the federal reserve increase the money supply during y2k scare?
Wiki User
∙ 11y ago
they wanted to create a bubble.
Wiki User
∙ 11y ago
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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 monetary policy strategy of the Federal Reserve do these headlines?
Decreasing the money supply to slow the economy
How can the Federal Reserve use the reserve requirement the discount rate and open market operations during a time of recession?
Yes b/c this would increase the banker's availability to funds and thus increase the money supply, stimulating the economy.
What government agency conducts monetary policy in the United States?
The Federal Reserve is responsible for managing the money supply in the U.S.
The Federal Reserve System controls the size of the?
Money supply
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 is the most likely effect of the Federal Reserve lowering the discount rate on overnight loans?
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in the money supply
What monetary policy strategy of the Federal Reserve do these headlines?
Decreasing the money supply to slow the economy
How can the Federal Reserve use the reserve requirement the discount rate and open market operations during a time of recession?
Yes b/c this would increase the banker's availability to funds and thus increase the money supply, stimulating the economy.
When the federal reserve puts money in a banking system?
When there are liquidity problems and/or when they want to increase money supply.
What government agency conducts monetary policy in the United States?
The Federal Reserve is responsible for managing the money supply in the U.S.
What is is the purpose of the Federal reserve bank?
The Federal Reserve Bank manages the U.S. economy by controlling the money supply.
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.
The Federal Reserve System controls the size of the?
Money supply
What is responsible for controlling the money supply?
Federal Reserve Bank
How does the federal reserve buy and sell government securities?
This is called open market operations, they do this to increase the money supply, buy buying bonds or decrease the money supply by selling. They do this to control interest rates and inflation.
When the Feds want to increase the money supply it?
The reserve requirement is 0.5. The Fed wants to increase the money supply by $1000.
