[Series 65] 3, The Federal Reserve and Monetary Policy

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How the Federal Open Market Committee (FOMC) uses open market operations as its primary tool to influence the money supply. - The direct impact of the Fed buying government securities to expand the money supply and selling them to contract it. - The distinction between the discount rate, which the Fed sets for loans to banks, and the federal funds rate, which banks charge each other. - How changes in the reserve requirement affect the amount of money banks can lend out. - To identify the correct Fed monetary policy action (expansionary vs. contractionary) for different economic scenarios like recessions or high inflation. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep