Buy custom Macroeconomic Impact on Business Operations
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| Topic: |
Business
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| Number of pages / Number of words: |
8 / 2201 |
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Today the Fed mandates the amounts of reserve that a bank is required to hold in what is called the Required Reserve Ratio (RRR). The RRR is one of several tools used by the Fed to implement monetary policy in favor of desirable economic conditions. These tools will all be discussed in further detail in the sections to come...
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These tools will all be discussed in further detail in the sections to come.
Macroeconomic Indicators and Influences
"The object of monetary policy is to influence the performance of the economy, as reflected in such factors as inflation, economic output, and employment" (FRBSF 1995). The Fed's monetary policy consists of three main tools that it uses to influence the supply of available money in the economy: the Discount Rate (DR), the RRR, and Open Market Operations (OMO)...
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General points of the essay
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