Focuses on influencing the federal funds rate

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Reference no: EM131387193

1. Explain how a monetary policy that focuses on influencing the federal funds rate can influence other market determined interest rates.

2. Does the existence of federal deposit insurance render the Federal Reserve’s role as a lender of last resort unnecessary? Explain.

3. Explain how the role of banks in financial markets would change if reserve requirements on all deposits were raised to 100 percent.

Reference no: EM131387193

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