purchase custom essay, buy persuasive term paper, order essay

How The Federal Reserve System Works In The United States

Title: How The Federal Reserve System Works In The United States
Category: /Social Sciences/Sociology
Details: Words: 1180 | Pages: 4 (approximately 235 words/page)
How The Federal Reserve System Works In The United States
Every Capitalist nation has a monetary system basically similar to ours. As a consequence, all have developed central banks whose duties are essentially like those of the Federal Reserve, namely, to exert control over the direction and extent of changes in the money supply. The aim of all central banks is also the same. They want to keep their economies supplied with the "right" amount of money. If money supplies are scarce, the economy will …showed first 75 words of 1180 total…
You are viewing only a small portion of the paper.
Please login or register to access the full copy.
…showed last 75 words of 1180 total…whole will have suffered a diminution of its reserves. By selling securities, in other words, the Federal Reserve authorities lower the Federal Reserve accounts of member banks, thereby diminishing their reserves. Thus we see that there are three ways in which the Federal Reserve can increase or decrease the money supply. It can raise or lower bank reserves. Moreover, it can raise or lower the discount rate, and it can sell or buy government bonds.

Need a custom written paper?
Buy a custom written essay and get 20% OFF the first order
Service Features
  • 275 words per page
  • Font: 12 point Courier New
  • Double line spacing
  • Free unlimited paper revisions
  • Free bibliography
  • Any citation style
  • No delivery charges
  • SMS alert on paper done
  • No plagiarism
  • Direct paper download
  • Original and creative work
  • Researched any subject
  • 24/7 customer support