All the ones that are highlighted are my answers and are wrong. Please help!
1)Everything else held constant, in the market for reserves, when the supply for federal funds intersects the reserve demand curve on the downward sloping section, decreasing the interest rate paid on excess reserves
A.has no effect on the federal funds rate.
B.lowers the federal funds rate.
C.increases the federal funds rate.
D.has an indeterminate effect on the federal funds rate.
2) Recently, overnight reverse repurchase agreements otherwise known as the repo market, has been in the news. Which of the following statements is the most accurate explanation of how this all got started?
A.None of these three possible answers listed here are accurate.
B.Originally, interest on reserves was only available for Fed member banks and other non member financial institutions were not included, thus the repo market was created for these other non member institutions.
C.Originally, interest on reserves was only available for non Fed member banks and Fed member banks were notincluded, thus the repo market was created for these member banks.
D.The repo market was created to help the Fed increase the federal funds rate between 2015 and 2018.
All the ones that are highlighted are my answers and are wrong. Please help! 1)Everything else...
1.The Fed purchases $100,000 of U.S. government securities from One Bank. Assuming the desired reserve ratio is 10 percent, banks loan all excess reserves, and the currency drain is 20 percent, how much does the quantity of money increase? A. $1,000,000 B. $10,000,000 C. $1,100,000 D. $900,000 E. $100,000 2.A bank maximizes its stockholders' wealth by ______. A. colluding with other banks to keep interest rates high colluding with other banks to keep interest rates high B. lending for long...
7. A decrease in the nonborrowed monetary base, everything else hela constant( the multiplier the same) will cause the money supply D. Demand deposits to rise 8. Everything else held constant, a decrease in excess reserves will he money supply to rise c No change in will cause A. The money supply to rise B. The money supply to remain constant C. The money supply to fall D. Checkable deposits to rise 9. If the required reserve ratio is 15...
Please answer all the questions?, thank you. Question 1 1 pts The required reserve ratio is the: O actual amount of reserves that banks must hold excess amount of reserves that a bank must hold O minimum amount of reserves the Fed requires a bank to hold. O total amount of reserves that banks hold at all times. Question 2 1 pts The discount rate is the interest rate: O commercial banks charge their low-risk customers for a loan. O...
1. The interest rate in the federal funds market: a. is an interest rate that is largely unaffected by the policies of the Fed. b. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. c. is determined by the imposition of price controls imposed by the Fed. d. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. 2. If there is a...
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A 1 ) Whethewin FALSE A) run Anhalt The banks vides the bank within D) Bantal s tenkast ( int) Hverything else held constant, when the federal funderat the interest rate paid on reserves, the quantity of reserves demanded rises when the federal funds rate A) abvers B) above, falls C) below, rises D) below, falls 3. (4 points) Inflation results in A) ease of planning for the future. B) ease of comparing prices over time. C) lower nominal interest...
need all 5 answeres If the monetary base is $1,000 billion, checkable deposits are $2,000 billion, the required reserve ratio is 10%, and excess reserves are $500 billion, then the currency in circulation are $500 billion, then 92,000 billion. A) $200 billion B) $300 billion. C) $450 billion. D) $700 billion. When the Federal Reserve wants to raise interest rates after banks have accumulated large amounts of excess reserves (i.e., when the supply curve intersects the demand curve at the...
The U.S. central bank that sets monetary policy and regulates the U.S. banking system is known as the: Select the correct answer Regional Central Bank The Federal Reserve Bank of New York The Congress Question 2 5 Points Which of the following is not a component of the Fed System? Select the correct answer Member Banks Federal Reserve District Banks Federal Open Market Committee Regional Committee Question 3 5 Points The function of setting reserve requirements and supervising member banks...
1.)To which of the following does the Fed, as used in the United States, refer? A.The country’s central bank B.The federal government C.The Treasury Department D.The Federal Deposit Insurance Corporation 2.)If a bank’s assets and its liabilities are equal, the bank is said to be _______. A.maximizing its profit B.insolvent C.fully utilizing its resources D.in balance 3.)The possibility that borrowers will not be able to repay their loans on time or in full is known as ________ risk. A.liquidity B.credit...
Questions 1 to 10 are false statements. Please re-write each statement so that it is true. It may be as simple as one word change or more complex. 3. Money market security prices and yields are more sensitive to changes in interest rates than long-term corporate bonds. 4. The majority of money market securities are low denomination, low risk investments designed to appeal to individual investors with excess cash. 5. Most money market securities are initially sold to individual investors....