ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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controlling the amount of money in circulation
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controlling the interest rates at which banks borrow money
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regulating how much money banks must keep on hand, or in reserve
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monitoring how federal agencies use tax dollars
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Detailed explanation-1: -The Fed has traditionally used three tools to conduct monetary policy: reserve requirements, the discount rate, and open market operations.
Detailed explanation-2: -The Fed has the ability to influence the federal funds rate by changing the amount of reserves available in the funds market through open-market operations-namely, the buying or selling of government securities from the banks.
Detailed explanation-3: -The Fed’s main duties include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services.
Detailed explanation-4: -Financial Stability Coordination & Actions. Responding to Financial System Emergencies. Cooperation on Financial Stability. Reports. Financial Stability Report. 20-Jan-2023