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☆☆☆☆☆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.
business cycles
it lends money to banks or anyother 'institution' in financial difficulty.
Each of the 12 Reserve Banks is subject to the supervision of a ninemember board of directors (board). Six of the directors are elected by the member banks of the respective Federal Reserve District (District), and three of the directors are appointed by the Board of Governors. Most Reserve Banks have at least one Branch, and each Branch has its own board of directors. A majority of the directors on a Branch board are appointed by the Reserve Bank, and the remaining Branch directors are appointed by the Board of Governors.
A unitary-elastic supply indicates a good with a supply-price elasticity of one, which means that a 1% change in price increases supply by 1%.
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.
Because there are more political complications with determining and implementing fiscal policy.
FAC (Federal Advisory Councel)
