IvanRivera6--Unit3-Financial Markets MT481

IvanRivera6--Unit3-Financial Markets MT481 - Financial...

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Financial Markets MT481 By Ivan Rivera Pg.96 The Fed and Monetary Policy Part 2 3. Open Market Operations Explain how the Fed increases the money supply through open market operations. FOMC buys and sells securities which are treasury bills, bonds and notes this helps set the money supply into a path where it will increase or decrease. This is the Open Market Operation and if the FOMC wants to increase money supply it will buy securities from the banks which then turn into loans for consumers and businesses. 5. Beige Book What is the Beige Book, and why is it important to the FOMC? The beige book in simple terms is a kind of Kelly Blue Book of some sort, it categorizes a multiple of subjects or topics in the country, real estate, unemployment, gas prices, consumer spending, tourism, manufacturing, construction and natural resources. The information comes from the 12 district banks and it governors and helps the FED or FOMC see how the flow of the company moves in each sectors they publish this book 8
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This note was uploaded on 09/22/2011 for the course BUS MT400 taught by Professor Weaver during the Spring '11 term at Kaplan University.

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IvanRivera6--Unit3-Financial Markets MT481 - Financial...

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