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The Federal Reserve Bank controls the money supply in order to affect interest rates and the...

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Finance

The Federal Reserve Bank controls the money supply in order toaffect interest rates and the economy. Although interest are marketdetermined, the Fed has a strong influence on interest rates bycontrolling the supply of loanable funds. The Fed uses it openmarket operations affects interest rates. Discuss the Fed’s openmarket operations. please do not plagiarize

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3.7 Ratings (321 Votes)
Open market operations refer to purchase and sale of government securities in the open market by the central bank The Federal reserve can buy government securities from the banks and in return inject huge amounts of    See Answer
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The Federal Reserve Bank controls the money supply in order toaffect interest rates and the economy. Although interest are marketdetermined, the Fed has a strong influence on interest rates bycontrolling the supply of loanable funds. The Fed uses it openmarket operations affects interest rates. Discuss the Fed’s openmarket operations. please do not plagiarize

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