Two main modifications be made to guard the public, avoid bank bailouts, and expand banking protection and soundness.
Increasing the (reserve requirement) ratios reduces the extent of deposits that can be supported with the aid of a given level of reserves and, in the absence of different actions, reduces the money stock and raises the price of credit.
It is the Federal Reserve's actions, as a central bank, to acquire three dreams distinct by using Congress: maximum employment, secure prices, and average long-term hobby rates in the United States.
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