name the 3 goals of Fed and name their 3 tools 25 secs, max
Primary goal: Stables prices Secondary goal: Facilitate growth 3rd goal:… (??) Tool 1: Open Market operation (most used) T2: Discount rate T3: Required Reserve Ratio
Facilitate SUSTAINABLE LONG TERM growth
i think the 3rd is improved standard of living, not quite sure, dont have the econ book on me
roumancesoiree Wrote: ------------------------------------------------------- > Primary goal: Stables prices > > Secondary goal: Facilitate growth > > 3rd goal:… (??) > > > Tool 1: Open Market operation (most used) > > T2: Discount rate > > T3: Required Reserve Ratio always gets people. 3rd goal is actually…THE FED FUNDS RATE. i got the flash cards in front of me, and they never lie!
o 3rd goal is to maintain a normal Fed Funds Rate?? I mean what are they trying to do to it?
roumancesoiree Wrote: ------------------------------------------------------- > o 3rd goal is to maintain a normal Fed Funds > Rate?? I mean what are they trying to do to it? go to monetary policy, book 2, CFAI. have to go get coffee now and kill more reading
They use the discount rate to manage the fed funds rate from getting out of control…which spills over into how the markets view the economy and where UST rates are, yadayaha.