Romeek Romeek
  • 01-06-2020
  • History
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4.
How can the Fed take money out of the economy?

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zsiibuna
zsiibuna zsiibuna
  • 01-06-2020

Answer:

The Fed could initiate open market operations (OMO), where it buys and sells Treasuries to inject or absorb money. It can use repurchase agreements for temporary expansions. It can use the discount window for short-term loans to banks. By far, the most common result is an increase in bank reserves.

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