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How The Fed Works

Download this Class Presentation to learn how the Federal Reserve operates and influences the economy.

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    What are the elements that would effect the Federal Reserve in regulating the discount rate?  Poor Economic Situation.  Higher Unemployment Levels.  High Prices Variation.  Low Economy Production Capability.  High Federal Funds Rates.

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    How does the discount rate influence the choices of banks in setting their particular interest rates?  Lower Discount Rates : 1. Banks borrow high reserves. 2. Providing more loans. 3. Lower interest rates. .  Increase Discount Rates : 1. Decrease in Bank reserve. 2. Providing less loans. 3. Higher interest rates.

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