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The factors that affect money supply are the required reserves for bank rates. Money is mostly created by loans, therefore the shadow banking system is the one that creates the loans. The federal banking system does not control the shadow banking system, so therefore there are no reserve requirements.
What else can I help you with?
What are the factors that affect labor supply?
There are many factors that affect labor supply. In most cases, this will be determined by the wage rate of the particular industry and the production level expected among other factors.
Which factors affect money market interest rates?
Supply and Demand.The interest rate is simply the price of money. Confidence, economic conditions etc.are all relevant but these are all just factors combining to form S+D
What factors affect falls in Indian money value?
The most influential factors are:The increased demand of dollarSlowdown in GDP growthInflation
If the federal reserve sells 40000 in treasury bonds to a bank at 5 interest what is the immedate effect on the money suppy?
When the Federal Reserve sells $40,000 in Treasury bonds to a bank, it decreases the money supply by that amount. The bank pays for the bonds using its reserves, which reduces the reserves available for lending. Consequently, this action tightens the money supply, as there is less money available in the banking system for loans and other transactions. The interest rate of 5% is relevant for future borrowing but does not directly affect the immediate change in the money supply from this transaction.
What is wrong when there is so much money in circulation?
The problem is that money is based on supply and demand principles. When you have too much supply it devalues the money. If there is excess supply it reduces demand. This usually results in inflation.
How the the tools used by the Federal Reserve to control the money supply influence the money supply and in turn affect macroeconomic factors?
The economy of a country is affected by an infinite number of factors.
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
How does raising the discount rate affect the money supply?
Decreases the money supply
Which of these can affect the economy by increasing or decreasing the money supply?
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
Factors that affect the location of a business?
Availability of raw materials - resources , sufficient power supply , large labor supply , money for investment in industries , efficient transportation system, closeness to markets, cities, towns, and incentives to attract industry are factors that affect industry location
Explain how different monetary policies affect the money supply in the economy?
"Explain how different monetary policies affect the money supply in the economy?"
What are the factors that affect the supply?
There are many factors that affect labor supply. In most cases, this will be determined by the wage rate of the particular industry and the production level expected among other factors.
What are the factors that affect labor supply?
There are many factors that affect labor supply. In most cases, this will be determined by the wage rate of the particular industry and the production level expected among other factors.
Can factors that effect demand also affect supply?
no
What factor affect price?
What factors usually affect pricing?
How the non price price factors affect demand and supply?
By doing the factors..
What are the factors that affect the monetary base?
factor affect money base in Ethiopia case
