The Federal Reserve (Fed) exerts considerable control
The Federal Reserve (Fed) exerts considerable control over the money supply. In your paper:
Identify the tools the Fed uses to control the money supply (traditionally there have been 3 tools but see this article (Links to an external site.) for a discussion of a new, fourth tool).
Discuss how those tools can be used to control the money supply.
Identify the tool the Fed uses most often and explain why the Fed seldom uses the other two.
Discuss the most recent actions by the Fed.
Evaluate those actions in terms of how they might affect your career decisions. For example, would the Fed actions make it better or worse to seek a bomb change or to leave the workforce and return to school, etc).
Adhere to the following standards:
Sample Solution
The Federal Reserve (Fed) exerts considerable control
The Federal Reserve (Fed), as the nation`s monetary policy authority, influences the availability and cost of money and credit to promote a healthy economy. The Fed has traditionally used three tools to conduct monetary policy: reserve requirements, the discount rate, and open market operations. In 2008, the Fed added paying interest on reserve balances held at Reserve Banks to its monetary policy toolkit. More recently the Fed also added overnight reverse repurchase agreements to support the level of the federal funds rate. Open market operations are flexible, and thus, the most frequently used tool of monetary policy.
