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Back to Podcast Episodes![[SIE] 6, Monetary Policy Tools](https://artwork.captivate.fm/abe4183a-4dfa-4a03-97da-92d15c5d473d/_bZUi6Yzjq6h3zQu_ZsaQB5Y.jpeg)
[SIE] 6, Monetary Policy Tools
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the SIE Exam. In this episode you will learn: - How the Federal Reserve uses open market operations by buying or selling securities to manage the money supply. - The distinction between the discount rate, set by the Fed, and the market-driven federal funds rate. - Why changing the reserve requirement is the Fed's most powerful, but least used, monetary policy tool. - The specific actions the Fed takes to implement expansionary (easy money) versus contractionary (tight money) policies. - A simple mnemonic to remember open market operations: FED BUYS makes the money supply BIGGER, and FED SELLS makes it SMALLER. For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
Published on 2 days, 8 hours ago