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Topic: Business
Number of pages / Number of words: 7 / 1747
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Payment that is received from the Federal Reserve will be deposited into the commercial banks that will cause an increase in the bank's reserves and the checkable deposits. Selling bonds will have the opposite effect on the money supply. When securities are sold to commercial banks, these commercial banks will pay for these bonds by drawing checks against their deposits...


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When the Fed collects these checks, it will in turn lower the reserve of the banks. This will lead to a reduction in the ability of the commercial banks to make loans. Securities that are sold to the public will also have the same effect on the money supply as the public will pay for these bonds with checks that will be drawn against the bank...


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General points of the essay

commercial banks Federal Reserve Bank Changing Money Supply Federal Reserve Macroeconic Impact On Business Operations Macroeconomic Impact Of The Federal Reserve Bank Macroeconomic Impact On Business Operations Macroeconomic Impact on Business Oerations Macroeconomic Impact on Business Operation Macroeconomical Impact on Business Operations Macroeconomics Impact on Business Operations The Federal Reserve Board The Federal Reserve System Federal Reserve Act The Development of the Federal Reserve The Universal Commercial Code, Banks, and Fraudulent Activity

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