History, 22.07.2019 14:00 amandarenee4296

What is a main goal of the federal reserve in its monetary policy?

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Answer from: dorsonchang6511

The Federal Reserve has three main goals regarding its monetary policy, which are the following:

The maximum possible and sustainable rate of employmentTo maintain stable pricesModerate long-term interest rates.

To achieve these goals, the Federal Reserve uses four tools which are commonly known to us as discount rates (interest rates to commercial banks for short-term loans), operations of the open market (Wall Street), the interest put on reserves and reserve requirements. These four tools affect the amount of money available in the banking system and determine the effectiveness of the goal achievement.

Answer from: sdolina5

The main goal of the Federal Reserve in its monetary policy is the regulation of the stock market

The responsibility of the Federal Reserve is to promote a stable and strong US economy. The Federal Reserve is saddled with the responsibility of controlling the US monetary policies to promote 3 key areas of the Economy which include employment sustainability, ensure stable prices and come up with moderate interest rates.

Further Explanation

Employment sustainability means to drives policies that would promote employments and also ensures the stability of inflation rates

The feds must also ensure the prices of goods and services are stable so that the public won’t have to be worried about unstable prices. When there is stability in the prices of goods and services, the long-term interest rate would be moderate because these two economic indices go together.

The Federal Reserve role is very important in the economy of the United States and it is made up of the Board of governors.

Some of the roles of the Federal Reserve also include

The fed determines the discount rate for commercial banks It manages inflation It controls the banking system It supervises the activities of commercial banks. Therefore, the main goal of the Federal Reserve in its monetary policy is the regulation of the stock market

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What is a main goal of the federal reserve in its monetary policy? What is a main goal of the federal reserve in its monetary policy?

KEYWORDS:

monetary policyfederal reservecentral bankemploymentinterest rate

Answer from: Quest

assuming that you are talking about the one in egypt: hecka oil

explanation:

Answer from: Quest

the answer is use of support

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