https://padlet.com/85040/g48lqlslaipt Monetary Policy & the FED en-us 2017-12-18 05:18:14 UTC 2017-12-18 06:03:31 UTC hello@padlet.com 85040 https://padlet.com/85040/g48lqlslaipt/wish/216843010 The effect of the FOMC selling government securities on the economy will lead to less money being available which will make it harder for people to secure investments which will result in the economy slowing down. With the securities being sold, it also affects interests rates for individual citizens as there is less money on supply for banks which will result in more difficulty with loans and securing feasible interest rates.]]> 2017-12-18 05:18:53 UTC https://padlet.com/85040/g48lqlslaipt/wish/216843010 85040 https://padlet.com/85040/g48lqlslaipt/wish/216843904 Economy wise, a higher discount rate affects interest rates in the economy. Overall, the interest rates rising might be due to the cost of borrowing money from banks being higher than average. On a citizen scale, individuals with a lot of money may be prompted with better interest rates so that there is money available to be borrowed should it need to be by banks.]]> 2017-12-18 05:28:21 UTC https://padlet.com/85040/g48lqlslaipt/wish/216843904 85040 https://padlet.com/85040/g48lqlslaipt/wish/216844114 If the Board of Governors increased the reserve ratio then the economy would do better because inflation would decrease due to more money being on hand in banks and less loans being lent out at a time. Citizens would be affected by this due to less loans being able to be given to them or to businesses that would require one.]]> 2017-12-18 05:31:18 UTC https://padlet.com/85040/g48lqlslaipt/wish/216844114 85040 https://padlet.com/85040/g48lqlslaipt/wish/216845573 If the FOMC is buying government securities then there is more money available to the general public. By the FOMC buying securities from banks, the money from banks will then be used in the form of loans to citizens or businesses. In regards to the whole economy, more availability to loans and currency will allow for there to be stimulation in the economy.]]> 2017-12-18 05:48:07 UTC https://padlet.com/85040/g48lqlslaipt/wish/216845573 85040 https://padlet.com/85040/g48lqlslaipt/wish/216846819 If the discount rate decreases, then the shortage of funds at one bank will not affect other banks. Economically, a decrease in the rate makes it much cheaper for banks to borrow money so citizens will have access to more credit and there will be more lending capabilities all throughout the economy.]]> 2017-12-18 05:52:34 UTC https://padlet.com/85040/g48lqlslaipt/wish/216846819 85040 https://padlet.com/85040/g48lqlslaipt/wish/216849010 If the reserve ratio decreases, then economically banks will not have to hold as much money in them and are able to lend out more money since they do not have to hold it. This affects citizens because if they require a loan then they will be able to acquire one since the reserves are being used for other means.]]> 2017-12-18 06:00:44 UTC https://padlet.com/85040/g48lqlslaipt/wish/216849010