The Federal Reserve Bank of the United States

Another mechanism the national shyness Bank uses occasionally involves changing the reserve requirements for moneymaking(prenominal) banks. Banks must have sufficient cash on pass by to meet any foreseeable demand for cash do by depositors. The specific amount of research is dictated by the federal official let Bank. By increasing this reserve, the Federal Reserve Bank has the ability to pull money out of the prudence and by reducing the amount of required reserves the Federal Reserve Bank evoke inject money into the saving.

This pricking is rarely used

because it can have a dramatic impact on the economy far beyond that which was intended by the Federal Reserve Bank (Obringer).

"Primary Market." Investopedia.com. 2008. Investopedia ULC. 23 Nov. 2008 .

According to an essay published online on the Investopedia.com website, a base merchandise is a market that issues new securities on an established stock exchange. A primary market for stock is a place where potential investors have their first opportunity to purchase s
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