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Treasury and federal agency securities, Discount rate adjustment-the interest rate charged to commercial banks and other institutions on loans they receive from regional Federal Reserve Bank's lending facility--the discount window, Adjustment of reserve requirements-the amount of funds that a bank must hold in reserve against specified deposit liabilities. The open market is the most frequently used/toughest power.
3. Trade deficit is when there is a negative balance of trade is known or a trade gap.
A federal deficit is when the government spends more money than it takes in. It is usually financed by borrowing or by issuing long-term government bonds or shorter term notes and bills...
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