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☆☆☆☆☆Cards in this guide (6)
What are the three ways the Federal reserve can change the money supply
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.
What are the leading economic indicators supposed to predict
business cycles
What are the main components in the Federal Reserve banks
The Federal Open Market Committee. The Federal Open Market Committee (FOMC) consists of seven Federal Reserve Board members and five Federal Reserve bank representatives. The FOMC sets monetary policy by.
Suppose a bank has 500000 in deposits a required reserve ratio of 5 percent and bank reserves of 100000 Then the bank can make new loans in the amount of how much
required reserves is 25,000. the bank has excess reserves of 75,000, they can loan out everything but the required reserves
so assuming they have no loans, they can loan up to 475,000.
What is the abbreviation for the research arm of the federal reserve
FAC (Federal Advisory Councel)
How can monetary policy makers help smooth out fluctuations of the business cycle
They can utilize and hone the practice of good timing.
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