Asked by
mostafa saadawy
on Nov 11, 2024
Verified
The Fed relies primarily on the discount rate to control the money supply.
Discount Rate
The interest rate charged by central banks on loans they provide to commercial banks or financial institutions.
Money Supply
The entire amount of cash and cash equivalents present in an economy at a designated time, including money in the form of coins, notes, and funds held in checking and savings accounts.
- Gain an understanding of the methods used by the Federal Reserve to manipulate the economy through monetary policy.
- Comprehend the impact of the reserve requirement and the discount rate on banking activities.
Verified Answer
MK
Learning Objectives
- Gain an understanding of the methods used by the Federal Reserve to manipulate the economy through monetary policy.
- Comprehend the impact of the reserve requirement and the discount rate on banking activities.