ACT 3030 Lecture Notes - Lecture 9: Federal Open Market Committee, Federal Reserve System, Open Market Operation
Document Summary
M-1 category of money supply includes money that is quickly and easily accessed(currency,coins,checks,paper money) M-2(savings account,money market accounts,mutual funs) represents the most commonly used category of the money supply. A rapid increase in the money supply may lead to an increase in the rate of inflation. When the value of the u. s. dollar increases relative to other currencies: foreign goods become less expensive to u. s. consumers. The strength of the u. s. dollar relative to other currencies depends mainly on the performance of the u. s. economy relative to other economies. The organization responsible for conducting monetary policy in the united states. The board of governors of the federal reserve system determines. The fed uses ________ to regulate the money supply the discount rate. The amount of money the federal reserve makes available for people to buy goods and services. Doing so allows us to control somewhat to control the prices of goods and services.
