Name any two of the monetary policy tools that both ECB and the FED use?
Two monetary policy tools used by both ECB and Federal Reserve are
1) Reserve requirement where it is the percentage of the deposit that the banks must keep in the central bank
2) Discount Rate where it is the rate at which the members can borrow from the central bank all in all.
Name any two of the monetary policy tools that both ECB and the FED use?
2. The Fed has three different tools it can use to carry out its monetary policy goals. What are these policy goals? What are these tools? Explain how each tool works.
(a) Identify the three principal monetary policy tools (i.e., instruments) of the Fed and state how each can be used to increase the money supply. (b) Identify the Fed's policy tool that is most frequently used to conduct monetary policy and state two advantages in using this tool. (c) Briefly state the principal disadvantage in using each of the Fed's other monetary policy tools in conducting monetary policy.
Name one monetary policy, and specify the policy tool to use, that the Fed could make to help boost the economy.
How does the Fed currently conduct U.S. monetary policy? Your answer should involve all aspects of policy from tools to goals. Why does the Fed conduct policy as it currently does? For example, why does the Fed choose a particular tool? What are the limits of the Fed's ability to influence the economy?
1. what happens when the FED restricts monetary policy? 2. what are the effects of the Fed reducing the interest rate? 3. what are your thoughts about the tools the FED uses? Are you in agreement or disagreement with any of their tools? If so, which ones and why?
Which monetary policy tool does the Fed use most infrequently?
Explain what is monetary policy, who is in charge of it, what tools are used to implement it. What kind of monetary policy has the Fed been conducting recently, and why? Explain briefly how this policy is aimed to affect inflation, employment and aggregate demand. For best results, you may want to look up recent FOMC announcements.
the economy is experiencing a recession and high unemployment a. Use an AD-AS model together with the Fed Funds market to represent ther short ran equilibrium in b. What types of monetary policy (i.e.. expansionary or restrictive) should the Fed implement? c. In implementing the policy you suggest. which actions (please give at least two actions) should the Fed take to achieve this policy? Explain how t he y policy would address this problem and the consequence of the monetar...
Which of the monetary policy tools can alter both the level of excess reserves and the money multiplier? Multiple Choice open-market operations the discount rate the federal funds rate the reserve requirement
Use of discretionary policy to stabilize the economy Should policymakers use monetary policy, fiscal policy, or both in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy and the pros and cons of using these tools to lessen economic fluctuations. The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (AS), and long-run aggregate supply curve (LRAS) For the economy in May 2020. According to the...