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3 million2 0 112009 more than 103 million to 444

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Unformatted text preview: 3 million2 0 1/1/2009 More than $10.3 million to $44.4 million3 3 1/1/2009 More than $44.4 million 10 1/1/2009 Nonpersonal time deposits 0 12/27/1990 Eurocurrency liabilities 0 12/27/1990 Dr. David P. Echevarria All Rights Reserved 6 MONETARY POLICY; MONETARY CONTROLLING SUPPLY OF MONEY CONTROLLING A. Reserve requirements for deposit liabilities B. Open market operations 1. 2. 3. Buying government securities by the Fed Selling government securities by the Fed Discount rate: cost of borrowing from the Fed C. Margin Requirements for Security Markets D. I mpact on Firms of Monetary (FED) and Fiscal Impact Policy (CONGRESS) Policy 1. 2. M.P. affects the cost of [new] capital. Affects expansion plans. Fiscal Policy; create Government demand for capital goods. Fiscal capital Dr. David P. Echevarria All Rights Reserved 7 CHANGES IN MONETARY BASE: CHANGES IMPACT ON CREDIT IMPACT A. A. B. C. D. E. Cash deposits create new excess reserves. Excess reserves loaned out and new deposits created. New deposits pe...
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