Question
I know the Fed uses four tools to influence/or control the money supply of the U.S.
1. Feds Fund rates
2. Open Market
3. Reserve requirements
4. Discount rate
Can someone please explain what they are and how the fed uses them. I have a test waiting for me after thanksgiving. I searched the net but I'm getting different ways of stating it, making it confusing. Thank you so much.
1. Feds Fund rates
2. Open Market
3. Reserve requirements
4. Discount rate
Can someone please explain what they are and how the fed uses them. I have a test waiting for me after thanksgiving. I searched the net but I'm getting different ways of stating it, making it confusing. Thank you so much.