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What is the tool commonly used by the federal reserve whereby it buys or sells U.S Treasury bond?

open market operations


The economic tool used by the Federal Reserve whereby it buys or sells U.S. Treasury bonds is called what?

open market (A+)


What is a tool commonly used by the federal reserve whereby it buys or sells u.s. treasury bonds?

A tool commonly used by the Federal Reserve is open market operations, which involve the buying and selling of U.S. Treasury bonds. When the Fed buys bonds, it injects liquidity into the banking system, lowering interest rates and stimulating economic activity. Conversely, selling bonds withdraws liquidity, which can raise interest rates and help control inflation. This tool is vital for implementing monetary policy and influencing the overall economy.


What is a fed wire?

high-speed, computerized communications network that connects all 12 Federal Reserve Banks, their 24 branches, the Federal Reserve Board office in Washington, D.C., U.S. Treasury offices in Washington, D.C., and Chicago, and the Washington, D.C. office of the Commodity Credit Corporation; also spelled FedWire and Fedwire. The Fed wire has been called the central nervous system of money transfer in the United States. It enables banks to transfer reserve balances from one to another for immediate available credit and to transfer balances for business customers. Using the Fed wire, Federal Reserve Banks can settle interdistrict transfers resulting from check collections, and the Treasury can shift balances from its accounts in different reserve banks quickly and without cost. It is also possible to transfer bearer short-term government securities within an hour at no cost. This is done through a procedure called CPD (Commissioner of Public Debt of the Treasury) transfers, whereby one Federal Reserve Bank "retires" a seller's security, while another reserve bank makes delivery of a like amount of the same security from its unissued stock to the buyer. by pratik nakrani, marwadi college, rajkot


What is a fractional reserve banking system?

The fractional reserve banking is necessary as it helps the banks satisfy the demands for withdrawals. It refers to the practice whereby a given bank holds reserves that are less than the amount of the deposits of their customers.


What is a fractional reserve banking system necessary?

The fractional reserve banking is necessary as it helps the banks satisfy the demands for withdrawals. It refers to the practice whereby a given bank holds reserves that are less than the amount of the deposits of their customers.


Term given to the situation whereby both federal and state parliaments can legislate on the same matter?

Do your revision by yourself.


Senatorial courtesy refers to the tradition whereby?

senators are consulted on the nomination of lower-court federal judgeships in their state


Which of these is a description of a bankruptcy?

a federal law whereby a person's assets are turned over to a trustee and used to pay outstanding debts


What form of leadership does the United states have?

The United States is a Federal Republic, whereby states govern most of their own affairs. The Federal government ultimately has rule over the land, and it is led by the President.


What do you call the system of government whereby the power to make laws is divided among two levels of government provincial and federal.?

You call it a federation.


What das fedral mean?

Federal refers to a system of government whereby several states form one central government but remain independent as far as the running of the internal affairs is concerned.