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ADVERTISING: Information provided about a product by a company to promote or maintain sales, revenue, and or profit. Advertising is often an explicit method of signalling that sellers use to provide information to buyers. The primary objective of advertising from the sellers perspective is to increase (or at least maintain) demand for a product. To accomplish this objective advertising provides buyers with two important types of information -- prices and product quality.
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Lesson 20: Federal Reserve System | Unit 4: Monetary Policy
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Page: 18 of 20
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- That monetary policy is controlling the money creation activity of the fractional-reserve banking system to control deposits and the money supply.
- That expansionary monetary policy increases aggregate demand up to full employment and contractionary monetary policy decreases aggregate demand back to full employment.
- The four tools of monetary policy: open market operations, discount rate, reserve requirements, and moral suasion.
- How open market operations are used by the Fed to control the money supply.
- That the discount rate is used by the Fed to signal the intentions of the open market operations.
- That reserve requirements are the regulations the Fed uses to ensure banks keep enough reserves to back deposits.
- That moral suasion is a policy in which the Fed requests that the banking system take some sort of action.
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FEDERAL RESERVE DEPOSITS Deposits that commercial banks keep with the Federal Reserve System. Federal Reserve deposits play three key roles in the banking system. One, they are used by the Federal Reserve system to process or clear checks. Two, they are loaned between commercial banks through the Federal funds market. Three, they are used by the Federal Reserve System to control the money supply. Federal Reserve deposits are one of two types of bank assets that are considered bank reserves and used to satisfy reserve requirements. The other is vault cash.
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ORANGE REBELOON
[What's This?]
Today, you are likely to spend a great deal of time strolling around a discount warehouse buying club seeking to buy either an AC adapter that works with your MPG player or rechargeable batteries. Be on the lookout for poorly written technical manuals.
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There were no banks in colonial America before the U.S. Revolutionary War. Anyone seeking a loan did so from another individual.
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"Anyone who has never made a mistake has never tried anything new. " -- Albert Einstein, physicist
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M
Imports
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