Explain how the Fed’s use of its three tool of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.

FINC 610 AS4

 

Complete this essay in a Microsoft Word document, answer each of the 2 essay questions with a minimum of 300 words; 600 total, APA formatted and 5% similarity.Make sure you use adequate, credible and reliable APA source 2 citations to support your work.

 

 

Answer each of the 2 essay questions below with a response that is at least 300 words in length. The total submission for this week should be 600 words in length.

1. Explain how the Fed’s use of its three tool of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.

2.Explain why banks, which would seem to have a comparative advantage in gathering information, have not eliminated the need for the money markets

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