the money market

Question 1

how does monetary policy work (reserve requirement, discount rate, open market operations) and interest rates

Answer 1

money that banks need to keep in reserves
-1) i.r. fall= reduce reserve
-i.r. rise=increase reserve
base rate
2)(primary)
-decrease
-increase
3)
-buy bonds
-sell bonds

Question 2

money market graph

Answer 2

-interest rate and quantity of money
-d normal, s straight