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            | Topic: | Business | 
        
            | Number of pages / Number of words: | 2 / 487 | 
                
    
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The Federal Reserve would buy or sell bonds in exchange for hard currency. When the Federal Reserve disburses or collects this hard currency payment, it alters the amount of currency in the economy, thus altering the monetary base.
Central bank has the authority to lend funds to financial institutions within their country...
        
        
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The lender funds represent an expansion in the monetary base. By calling in existing loans or extending new loans, the monetary authority can directly change the size of the money supply. All these measures affect the demand and supply of money and there by impacting the interest rates for the banks...
        
        
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            General points of the essay
            
                                    The Federal Reserve And Its Role In The Global Economy
                                    Chaos In The Currency Markets : Currency Crisis Of The Ems
                                    Exchange Rate Mechanisms - Currency Hedging
                                    Factors that Determine the Currency Exchange Rates
                                    Federal Reserve and Monetary Policy
                                    Federal Reserve's Role in the Economy
                                    Federal Reserve; Bonds verses Stocks
                                    Forward Currency Exchange Market
                                    Monetary Policy and the Federal Reserve
                                    The Federal Reserve System
                                    U.S. Monetary Policy and What the Federal Reserve
                                    US Federal Reserve Monetary Policy
                                    Federal Reserve Act
                                    Federal Reserve
                                    The Parallel Currency Approach To Asian Monetary Integration
                            
                    
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