1. The Federal Reserve Bank
... By controlling the money supply they are able to influence our economy. They are the system that decides how much money is in the economy, which can either cause our economy to expand or contract. If they want to increase money supplies they buy securities and to decrease the money supply they sell securities ... . When inflation is high, everything costs more, so money is worth less. Having too much currency in the market normally causes this. This ... fine balance by basically flooding the market with lots of cash. By making it so cheap to barrow money, and unattractive to save, peop...
- Word Count: 874
- Approx Pages: 3
- Has Bibliography
- Grade Level: High School