What are the three tools for controlling the money supply?

The Federal Reserve System is also known as The Fed. Many people don’t realize the importance and power of the Federal Reserve. It was created to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Fed plays an integral role in the United States’ government and economy.

Federal Open Markets Committee (FOMC)
The FOMC is charged with overseeing open market operations in the United States and is the principal tool of US national monetary policy. Use the links provided to find the information below:

• Who sits on the FOMC?
• What is the importance of the FOMC?
• How do they influence the monetary policy?
• What are the three tools for controlling the money supply?
• Which tool is used the most?
• What is the goal of the FOMC?
• How does the FOMC impact the economy?
Links for information:
http://www.federalreserve.gov/policy.htm
http://www.federalreserve.gov/fomc/
http://www.federalreserve.gov/pubs/frseries/frseri2.htm
http://www.econedlink.org/lessons/index.php?lid=1122&type=student

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