Discussion Board

federal reserve tools (1)

One of the Federal Reserve’s main jobs is to monitor and stimulate the economy of the US, to do so, the fed is using many tools, and these tools are forming the monetary policy, here are some of these tools.

1. Required reserve ratio:

This is the amount of deposit that banks has to keep with the fed. The fed is changing this amount corresponding the economy state. The fed is rarely changing this amount since it usually results in high cost incurred by the banks. Decreasing this…

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