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Final

Econ 2035 Final Study Guide For Last Two Chapters (got 94% in the course)

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Department
Economics
Course
ECON 2035
Professor
All Professors
Semester
Fall

Description
Econ 2035 Final Study guide for last two chaptersTools of Monetary Policy first 6 questions are repeats from the review for Exam 3 1What are the policy tools of the Fed Which is most important Why Compare this tool with the otherOpen Market operations changes in borrowed reserves discount policy and changes in reserve requirements Open market operations is the most important because it is the primary determinant of changes in interest rates and the monetary base the main source of fluctuation in the money supply It is better than discount policy because it can be precisely controlled With the discount policy the Fed can set the rate but cannot make the banks borrow funds If is better than reserve requirements because reserve requirements are no longer binding for all banks Also by adjusting the reserve requirements you
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