The federal reserve took money out of the banking system to, Ask an Expert

Economics

The Federal Reserve took money out of the banking system to raise the federal funds rate-the rate at which banks lend each other money overnight-from 4 percent to 4.5 percent.

a. How does the Fed take money out of the banking system?

b. Explain how doing so would raise the federal funds rate.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91295537

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