Three ways the Federal Reserve Bank can change the money supply.
One way the Federal Reserve Bank can change the money supply is by purchasing U.S. government securities from financial institutions. They can create “funds” or credits on their balance sheets in exchange for the securities. The second policy the Federal Reserve can use is the discount rate. This is the interest-rate the Federal Reserve charge banks for their loans. They can either increase or decrease this rate to encourage or discourage banks to borrow their money to make loans to the public. The last way the Federal Reserve can change the money supply is by regulating the amount of liquid reserves they keep on hand. The higher the reserve requirement, the less money available to for the bank to make new loans.
If the economy is growing too quickly, what changes could they make?
When the economy is growing too quickly and the money supply is growing too quickly, then inflation will result. The goal of the......

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Title: Federal Reserve Bank Changing Money Supply
Approximate Word Count: 556
Approximate Pages: 3 (250 words per double-spaced page)

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