Concept
How does the Federal Reserve manage the money supply?
IntroductionToBusiness OP 8D04gAa / Preparing for Tomorrow's Workplace Skills
"The Federal Reserve System (the Fed) is an independent government agency that performs four main functions: carrying out monetary policy, setting rules on credit, distributing currency, and making check clearing easier. The three tools it uses in managing the money supply are open market operations, reserve requirements, and the discount rate. The Fed played a major role in keeping the U.S. financial system solvent during the financial crisis of 2007–2009 by making more than $9 trillion available in loans to major banks and other financial firms, in addition to bailing out the auto industry and other companies and supporting congressional passage of Dodd-Frank federal legislation."
Related Ideas
- How does the Federal Reserve manage the money supply?IntroductionToBusiness OP 8D04gAa · Preparing for Tomorrow's Workplace Skills
- How does the Federal Reserve manage the money supply?IntroductionToBusiness OP 8D04gAa · 15.2. The Federal Reserve System*
- How does the Federal Reserve regulate credit and support payments?IntroductionToBusiness OP 8D04gAa · 15.2. The Federal Reserve System*
- How does the Federal Reserve regulate money and credit?IntroductionToBusiness OP 8D04gAa · Summary of Learning Outcomes
- What is the Federal Reserve System and how does it influence the economy?IntroductionToBusiness OP 8D04gAa · Summary of Learning Outcomes
- How does monetary policy influence economic activity and inflation?IntroductionToBusiness OP 8D04gAa · 1.5. Achieving Macroeconomic Goals*
- How did the Federal Reserve respond to the 2007–2009 financial crisis?IntroductionToBusiness OP 8D04gAa · 15.2. The Federal Reserve System*
- What effect do higher interest rates have on the U.S. economy?IntroductionToBusiness OP 8D04gAa · 15.3. U.S. Financial Institutions*