Title: Macroeconomic Impact On Business Operations

Essay Details

Subject: Business
Author: David M
Date: August 11, 2015
Level: University
Grade: A
Length: 6 / 1614
No of views: 0
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Essay text:

Open-market operations occurs when the buying of government bonds from, or the selling of government bonds to, commercial banks and the general public (McConnell-Brue, 2004, chpt. 15). The Federal Reserve can also influence the ability for commercial banks to lend by manipulating the reserve ratio. The reserve ratio is the amount the Federal Reserve is requiring the banks to keep in their reserve...

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The reserve ratio is the amount the Federal Reserve is requiring the banks to keep in their reserve. By increasing or decreasing the reserve ratio, this determines if a bank has more or less money to lend (The Federal Reserve, 2007). In the event that a main bank would have unexpected or immediate needs for additional funds, the Federal Reserve can make short-term loans (McConnell-Brue, 2004, chpt...

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