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One of the Changes to the Fed's Balance Sheet That

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Essay

One of the changes to the Fed's balance sheet that has occurred in recent years is the virtual elimination of a category of loans called float.How is float created and why has this item on the balance sheet almost disappeared?


Definitions:

Agricultural Diversification

The practice of growing a variety of crops or engaging in different agricultural activities to reduce risk and increase sustainability in farming.

Crop-Lien System

A credit system widely used in the Southern United States after the Civil War, where farmers used their crops as collateral for loans, leading to cycles of debt and poverty.

Southern Farmers

Generally refers to agricultural workers and landowners in the Southern United States, historically dependent on crops like cotton and tobacco, and deeply affected by the Civil War and subsequent economic changes.

Hatch Act

A U.S. federal law enacted in 1939 that restricts the political activities of government employees in order to ensure the neutrality of the public service.

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