Tools of monetary policy
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Expansionary (easy money) (Recession)
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Contractionary (tight money) (Inflation)
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Open market operation (OMO)
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Buy bonds (Increase money supply)
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Sell Bonds (decrease Money supply)
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Discount Rate
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Decrease
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Increase
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Reserve Requirement
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Decrease
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Increase
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OMO- buy or sell securities or bonds
Discount Rate- interest rate that the FED charges commercial
banks for borrowing money
RR- amount of money that a bank has to keep in their
reserves
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Fiscal
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Monetary
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Congress and President
Tax or Spend
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The FED (Federal Reserve Bank)
OMO
Discount rate
Federal Fund Rate
Reserve Requirement
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Federal Fund Rate- where FDIC member banks loan each other
overnight funds in order to balance accounts each day
Prime Rate- interest rate that banks charge to their most
credit worthy customers
I like how you have pictures detailing the axis and the values for the graphs but I would suggest that you add real life examples on finding the ER, RR, and etc but overall the notes are explained easily and pictures really give the notes a good understanding.
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