As the executive of a bank or thrift institution you are fac

As the executive of a bank or thrift institution you are faced with an intense seasonal demand for loans. Assuming that your loanable funds are inadequate to take care of the demand, how might your Reserve Bank help you with this problem?

Solution

Monetary policy is one part that I think that can be use by promoting economic stability. Ithink that it helps the money supply contracts and expand as dictated by economic conditions, serve as bankers banks in time of economic crisis, provide a more effective check clearance system, and establish a more effective regulatory system. Meeting the cerdit needs of individuals aand institutions, clearing checks, and supporting depository institutions represent accommodative activities. They might can change reserve requirements, the discount rate, and conduct open market operations. Lastly, I know that the FED serve as a lender to deopsitory institutions