Discuss Why the Fed Rarely Changes the Reserve Requirements

question 169

Essay

Discuss why the Fed rarely changes the reserve requirements.

---

Definitions:

NOW Account

A checking account that earns interest on balances, where NOW stands for "Negotiable Order of Withdrawal."

Debit Account

An account that records expenses or assets, increasing with a debit entry and decreasing with a credit entry.

Traveler's Checks

Preprinted, fixed-amount checks designed to allow the person signing them to pay for goods or services in a foreign currency securely.

FDIC

The Federal Deposit Insurance Corporation is a United States government agency that protects depositors in the event of a bank failure, insuring deposits up to a specified limit.