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The term monetary policy refers to the actions taken by the Federal Reserve to control the cost of money in the United States. These efforts preserve the economy and promote stability, and this responsibility was given to the Federal Reserve through the Federal Reserve Act of 1913. In this course, we'll talk about the nine policy tools the Federal Reserve controls to influence the demand for and supply of balances that depository institutions hold at Federal Reserve Banks. We'll also discuss the impacts of the federal funds rate.
English
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