The trade between United States and Mexico started in late 19th century after the Mexican revolution. The trade relationship between US and Mexico was good as the United States was investing more in Mexican business.
U.S was trading oil from Mexico as it is the most crucial thing for the United States. More these two countries are part of NAFTA (a trading agreement) along with Canada. Due to this treaty between three countries, the countries are free from trade barriers.
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The Federal Reserve controls the money supply by:
- raising or lowering the discount rate.
- by raising or lowering the reserve requirement.
- by buying and selling government bonds and treasury bills.
<h3>What is Federal Reserve?</h3>
It should be noted that the Federal Reserve simply means the bank that oversees the economic affairs in a country.
Here, the Federal Reserve controls the money supply by raising or lowering the discount rate, raising or lowering the reserve requirement, and by buying and selling government bonds and treasury bills.
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