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Series 62 > Economics > Flashcards

Flashcards in Economics Deck (3):
1

What effect does FRB changing the discount rate have?

Increasing rate discourages borrowing and money supply tightens.
And vice versa.

2

Features of open market operations

Can be implemented quietly
Very effective, flexible and easy to reverse

3

Fed Repo agreements see the Fed...

...purchasing securities and therefore increasing money supply