Economics:
Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Chapter 13, Problem 9E
To determine

To write:

A directive issued to the Federal reserve on selecting a monetary policy in the event of recession in the US economy, targeting for the rate of increase in the money supply, the federal funds rate, the rate of inflation and the exchange value of dollars versus the yen and euro.

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Describe why some banks maintain a relationship with a correspondent bank.
What is the federal funds rate?   What problems does the FED encounter when trying to control the US money supply?
Read the following portion taken from another article (link:https://tbsnews.net/economy/banking/bangladesh-bank-creates-money-worth-over-tk70000cr-revive-economy-76435?fbclid=IwAR108OXKcbXq6JjZj6v9FbULrDtys_QsZySUTKeAmauoqTjppgnLqU89muw#.Xq5kdXhgRqq.facebook). What problem with the policy is being talked about here? Explain youranswer with an AD-SRAS-LRAS diagram. “On the other hand, complex processes for applying and getting funds from the stimulus packagehas slowed down releasing of the money. For instance, disbursing loans for garment workers has been delayed due to a task the banks arenot ready to handle. Instead of the RMG factories, Banks were given the responsibility to verifythe RMG workers' names and national identification numbers – a job difficult for the banks tocarry out."How can banks ensure that the workers are actually employed by the factories?" Mamunquestioned. "Garment factories should verify it.”
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