Buy custom Macroeconomic Impact on Business Operations
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
8 / 1961 |
Essay's paper body
The reserve requirements are a percentage of the bank's demand deposits and occasionally, time deposits. Currently the requirement is 10 % of demand deposits.
As Fed Chairman, the use of moral suasion, lowers the reserve requirement, banks have more money to lend. A lower reserve requirement increases the supply of loanable funds and speeds up the growth of the money supply...
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Currently the requirement is 10 % of demand deposits.
As Fed Chairman, the use of moral suasion, lowers the reserve requirement, banks have more money to lend. A lower reserve requirement increases the supply of loanable funds and speeds up the growth of the money supply. That is because having to keep less money in the vault or at the Federal Reserve Bank, means more money available for banks to lend...
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