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Macroeconomical Impact On Business Operations

Macroeconomical Impact on Business Operations

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Title: Macroeconomical Impact on Business Operations

Essay Details:

Subject: Business

Author: Matthew M

Date: December 23, 2016

Level: University

Grade: A

Length: 5 / 1383

Essay text:

They are created by the purchase of government bonds from the public and the issuance of loans. The banks limit the creation of checkable deposits by the amount of currency reserves that they feel obligated, or required by law, to keep. Although people might think there should be an investigation with the banks, thrifts, and loan officers for creating checkable deposits, the Federal Reserve relies on these institutions to create such an important component of the nation's money supply (McConnell & Brue, 2004) Four tools exist that the Federal Reserve uses to control the money supply. Those tools consist of the federal funds rate (FFR), discount rate (DR), required reserve ratio (RRR), and the volume of open market operations (OMO)...

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