In the Money: What Goes on Behind the Doors of the Federal Reserve by James L. Rowe Jr. explains what is money and how it works? James explores about The Federal Reserve’s role and analysis the monetary policy. James discloses the values of different market products therein chicken, cattle, pigs, wampum, tobacco and beer. James mentions that the money comes in the US in three forms there in coins, currency and deposits by accounts. The article is very interesting and thought provoking which examines the economy and challenges for the business and employment. The consumers involve indirectly with the Fed and monetary policy implies through banks. The policy can vary because policy makers make changes regarding the time’s requirements. James does not suggest inflation strikes on fixed incomes because it influences badly on fixed deposits. James considers that demand for goods and services are very important because it directly connects with supply chain. He discusses monetary policy and compares to business, prices, jobs and loans’ ratio because policy cannot force to banks. According to James, moving the market depends on monetary policy as well the bank involves because a bank has ability to increase funds and controlling lend by borrow.
Reserve requirements also very important term which is used on a percentage of checking deposits. Reserve requirements works with commercial banks usually and require a reserve balance. On the other hand, a bank cannot lend require reserve because Fed bring on controlling the increasing ratio to lend more or less money for the reserve require. In the open market the position and operation is different kind because in this case the monetary policy will apply on buying and selling product under government securities. In fact, money moves in the market in multiple ways such as bank bases a loan on savings deposits. While the reserve