Federal Reserve And Money Supply
BUS305-0602B-01
Economics in a
Global Environment
Unit 5, Individual Project 2
"The Federal Reserve and the Money Supply"
By: Daniel Loran
Instructor
Professor Albert Alexander
Abstract: In this project, I will describe three ways the Federal Reserve can change the money supply, then discuss what changes would be made if there was an economic inflation, and economic recession. Finally, I will discuss the current condition of the economy in the United States, and what tools I would suggest using at the next meeting of the Federal Reserve based upon the data and trends.
I. Three Ways in which the Federal Reserve can change the Money Supply:
The three methods used by the federal reserve [Fed] to change the money supply in the country are
Open Market Operations; and,
Changing Reserve Limits on Banks; and,
Changing the discount rate to banks. (pp. 646)
In Open Market Operations, the FED gives and takes back available money to the economy through......
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Approximate Word Count: 1195
Approximate Pages: 5 (250 words per double-spaced page)
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