Economics

It cause interest rates to rise.

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.

It generally takes 2-3 days from the time the check is deposited until the time it clears. This can vary from bank to bank.

Computers, telephones, internet, and other office technology but they probably also use cars, planes and household technologies

tight money policy combats inflation (when to much money is out in circulation the Fed limits the amount of money that is in Circulation known as the tight money policy.)

a sale of bonds to decrease the money supply, increasing interest rates, these are recessionary measures used to slow down the economy.

the government restricts the amount of money that banks can lend.

to make sure the banks are obeying laws and regulations

In America, it is accepted that the more money someone makes, the more they should have in savings or invested. This may not always be the case, but it is believed to be.

a decrease in the money supply

Check Clearing

Federal Funds Rate

FAC (Federal Advisory Councel)

The federal funds rate is the interest rate banks charge on loans in the federal funds market. The federal funds rate is not set administratively by the Fed. Instead, the rate is determined by the supply of reserves relative to the demand for them.

ensures growth in the economy

sellers provide full and accurate information about loan terms

monetarism

For regulating the nations money supply

The money multiplier formula is the amount of new money that will be created with each demand deposit, calculated as 1 ÷ RRR.

above the federal funds rate

It is not safe to drink or eat chemicals.

If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.