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History, 30.07.2019 02:30 EdgeTheWizard

Unit 6 lesson 7- monetary policy tools 1- what is required reserve ratio? - the portion of a deposite that a bank must keep on hand 2- why does the fed rarely change the reserve requirment? - it can be disruptive to the whole banking system 3- how does the fed encourage banks to loan mor money? - by reducing the discount rate 4- how does a bond sale made by the fed affect the money supply? - the sale decreases the money supply 5- what is the policy used most by the fed change the money supply? - open market operations

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