Question

What is a long-term effect of the Federal Reserve actions?

Answer 1

A long-term effect of the Federal Reserve actions in the 1920’s is an increase in debt.

Another effect was the absorption of gold, after the tight money policy.

During the financial crisis of the ‘20s, the Federal Reserve introduced new policy tools that were connected with the reserve accounts of the banks. These were reserve balances, overnight reserve repurchase agreement facility, and term deposit facility

In 1920, the Federal Reserve started to use open market operations as a policy tool.

Answer 2

The Long term affect of Federal reserve results in the inflation rate. As the value of goods progress, the cost of money reduces. Moreover, the Federal Reserve counters by raising interest rates. The Fed has several It was formulated as a custom of state totalitarianism, which set the exhibition for the contemporary welfare environment. Feudalism encourages the reduction in the level of variation in several European countries. Feudalism inflates absolute sovereignty. Feudalism accommodated to stabilize European culture.  

Further Explanation :

The Federal Reserve commonly pointed to as the “Fed” is a section of the U.S. Federal Government, which is an autonomous agency, which can make judgments without support from the President or Congress and it is  “independent” of party diplomacies. The Fed’s purpose is to encourage sustainable extension, higher levels of job, the balance of values to maintain preserve the purchasing ability of the dollar and nominal long-term interest rates”.  

It fulfills its purpose with four basic responsibilities: administer financial policy, control banks, sustain the establishment of the financial operation and provide commercial services to the banking arrangement. The Fed is also in the administration of controlling and controlling groups to preserve the U.S. funding system and its customers.

Learn more:

1. Under the articles of confederation, if virginia had ten thousand citizens and Delaware had five thousand citizens, how many votes would each state have in the legislature? brainly.com/question/3595653

2. In what part of the great compromise are the ideas of the Virginia plan represented? brainly.com/question/2321581

Answer details:

Grade: High school

Subject: History

Topic: Federal Reserve actions

Keywords : Federal Reserve actions, Administer, United Sates, group, funding, responsibility, purchase, dollar , higher jobs , autonomous , judgment , diplomacy , extension.