What is the importance of monetary policy?
What are the two goals of the Federal Reserve?
How do interest rates get regulated?
What does Expansionary Policy mean?
What does Contractionary Policy mean?
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1. The Federal Reserve was established to regulate and oversee the nation's commercial banks, and to conduct monetary policy
ReplyDelete2. The importance of monetary policy is to make the Fed and Fed chair very influential
3. The two goals of the Federal Reserve are to make sure customers feel confident in the banks and that the banks have liquid assets.
4. Interest rates get regulated in large part by central banks who participate in open market operations and by buying or selling treasury securities.
5. Expansionary policy means loose policy which basically tries to help encourage economic growth, and is used during economic slowdowns and recessions.
6. Contractionary policy is used to try and reduce monetary expansion rates and does this by limiting the flow of money in the economy.