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Topic: Business
Number of pages / Number of words: 9 / 2393
Essay's paper body

The Federal Reserve will influence the money supply by either increasing or decreasing the reserve ratio. When an increase of the money supply is needed then the Federal Reserve will decrease the reserve ratio because this will increase the excess reserve from commercial banks. This will lead to opportunities for commercial banks to lend more money to the public which then will enlarge the money supply...


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This will lead to opportunities for commercial banks to lend more money to the public which then will enlarge the money supply. If the opposite is wanted, a decrease of the money supply, then the Federal Reserve will raise the reserve ratio. This will diminish the excess reserve of commercial banks and therefore, the possibility to lend money to the public is reduced...


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General points of the essay

Chicago Federal Reserve Federal Reserve Bank Changing Money Supply Federal Reserve System Federal Reserve and Money Supply Federal Reserve how does the federal reserve control the money supply? Macroeconomic Impact Of The Federal Reserve Bank Macroeconomic Impact On Business Operations Role of Federal Reserve The Federal Reserve Board The Federal Reserve System Federal Reserve Act THE FEDERAL RESERVE'S CURRENT The Development of the Federal Reserve federal reserve and inflation

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