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Friday, April 15, 2016

What are the factors that would influence the Federal Reserve in adjusting the discount rate?

 April 15, 2016     No comments   


What are the factors that would influence the Federal Reserve in adjusting the discount rate?
·         How does the discount rate affect the decisions of banks in setting their specific interest rates?
·         How does monetary policy aim to avoid inflation?
·         How does monetary policy control the money supply?
·         How does a stimulus program (through the money multiplier) affect the money supply?
·         Currently, what indicators are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust this?
·         What are some major differences between the Federal Reserve System and the monetary system in the officials' home country?
Discuss the relationship between supply chain and the supply and demand model.
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