what are the four main tools of monetary policy?
474527
The Fed can use four tools to achieve its monetary policy goals: the discount rate, reserve requirements, open market operations, and interest on reserves.
166047
Refer to “A New Frontier: Monetary Policy with Ample Reserves” for updated information on the Federal Reserve's monetary policy. The Fed can use four tools to achieve its monetary policy goals: the discount rate, reserve requirements, open market operations, and interest on reserves.
108801
There are three key entities in the Federal Reserve System: the Board of Governors, the Federal Reserve Banks (Reserve Banks), and the Federal Open Market Committee (FOMC).
428361
The Federal Reserve conducts the nation's monetary policy by managing the level of short-term interest rates and influencing the overall availability and cost of credit in the economy.
538697
Central banks are responsible for overseeing the monetary system for a nation (or group of nations), along with a wide range of other responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation, and full employment.
679290
['Inflation. ... ', 'Interest rates. ... ', 'Speculation. ... ', 'Change in competitiveness. ... ', 'Relative strength of other currencies. ... ', 'Balance of payments. ... ', 'Government debt. ... ', 'Government intervention.']
1235170
These four stages are expansion, peak, contraction, and trough. During the expansion phase, the economy experiences relatively rapid growth, interest rates tend to be low, production increases, and inflationary pressures build.
515167
Which statement BEST describes monetary policy and fiscal policy? Monetary policy reflects the Federal Reserve's authority to change the money supply; fiscal policy reflects the government's power to influence the economy through taxes, expenditures, and borrowing.
814731
There are four major goals of economic policy: stable markets, economic prosperity, business development and protecting employment.
736108
Eight major functions of central bank in an economy are as follows: (1) Bank of Issue, (2) Banker, Agent and Advisor to Government, (3) Custodian of Cash Reserves, (4) Custodian of Foreign Balances, (5) Lender of Last Resort, (6) Clearing House, (7) Controller of Credit, and (8) Protection of Depositor's Interest.
768697
['Automatic Stabilisation: Any disequilibrium in the balance of payments would be automatically corrected by a change in the exchange rate. ... ', 'Freeing Internal Policy: ... ', 'Absence of Crisis: ... ', 'Management: ... ', 'Flexibility: ... ', 'Avoiding Inflation: ... ', 'Lower Reserves:']
142910
Terms in this set (8) Implementation of monetary policy, banker to the government, banker to the banks - lender of last resort and a role in regulation of the banking industry. The central bank takes action to influence the manipulation of interest rates, the supply of money and credit, and the exchange rate.
1109412
Benefits of Central Bank Independence. Monetary policy (mainly interest rates) used to be managed by the government. ... The idea is that Central Banks will be more independent of political considerations and willing to keep inflation low – even if there are political costs to raising interest rates.
1303068
The Fed can use four tools to achieve its monetary policy goals: the discount rate, reserve requirements, open market operations, and interest on reserves. All four affect the amount of funds in the banking system. The discount rate is the interest rate Reserve Banks charge commercial banks for short-term loans.
490860
To do that, the Fed makes decisions over monetary policy to help maintain employment, keep prices stable, and keep interest rates at a level that helps the economy. It also supervises and regulates banks to make sure they are safe places for people to keep their money, and to protect consumers' credit rights.
1398083
['inflation. the continual increase in the price level of a basket of goods ans services.', 'real-risk free rate. nominal risk free rate that would exist on a security if no inflation were expected.', 'default risk. ... ', 'liquidity risk. ... ', 'special provisions. ... ', 'term of maturity.']
137103
The Fed's three functions are to: conduct the nation's monetary policy, provide and maintain an effective and efficient payments system, and. supervise and regulate banking operations.