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Monetary policy tools

Assignment Help Business Management
Reference no: EM133035813

Topic: Monetary Policy Tools

  1. The convenient and simple device used to explain commercial banking operations and money creation is the Balance Sheet. Please explain what is found on a balance sheet. 
  2. Please give an example of the Federal Reserve conducting an Expansionary and Restrictive Monetary Policy. The country is experiencing unemployment and recession. Show the effects of an expansionary policy. 
  3. While in theory the required reserve ratio could be a useful tool in the conduct of monetary policy, in reality it is seldom used as a monetary policy tool. Why?

Please cite the sources that have been use in APA Format

Reference no: EM133035813

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