What is the federal funds market

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Assignment: In addition your answers must prescribe to APA format.. You must submit a cover page, each question in a page by itself, and your references page must be also in a page by itself (includes references fom 2 different macroeconomics books and Priniples of Macroeconomics 11th edition). And, please do not forget to reference your in-text. Lastly your assignment must be submitted via "Safeassign" in order to obtain your max points your work must be original in at least 70%.

Answer the following questions:

- Discuss the impact of the bank mergers on the structure of American banking. Why do banks merge?

- What is the federal funds market? How does it help banks strike a balance between liquidity and profitability?

- Why has the Federal Reserve chosen to focus on the federal funds rate rather than some other interest rate as a tool of monetary policy?

- What is the difference between a depreciation of the dollar and a devaluation of the dollar?

- Explain why a U. S. recession that occurs as the rest of the world is expanding will tend to reduce the U. S. Trade deficit.

Reference no: EM132323799

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