Question

The terms refer to tools of monetary policy. Match each with its corresponding description. Two of the descriptions do not co

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1. Central bank prints additional money...: None

2. The Federal Reserve bank increases the share of total deposits...: Reserve ratio

3. The European Central Bank purchases...: Open market Operations

4. The Central bank decreases the rate... The discount rate

5. The Federal reserve requests secret bids.. The term auction facility

6. The US treasury serves as a...: None

Add a comment
Know the answer?
Add Answer to:
The terms refer to tools of monetary policy. Match each with its corresponding description. Two of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The U.S. central bank that sets monetary policy and regulates the U.S. banking system is known...

    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...

  • The government of Broncoland uses monetary policy tools similar to the Federal Reserve System of the...

    The government of Broncoland uses monetary policy tools similar to the Federal Reserve System of the United States and defines its monetary aggregates the same way as the Federal Reserve System of the United States. The required reserve ratio in Broncoland is 10%. The following information also applies to the government of Broncoland: Bank deposits at the central bank = $200 million Currency held by the public = $150 million Currency in bank vaults = $100 million Checkable bank deposits...

  • What are the Fed's three policy tools? The Fed's three policy tools are A. banking regulations,...

    What are the Fed's three policy tools? The Fed's three policy tools are A. banking regulations, last resort loans, and the purchase of foreign securities O B. last resort loans, open market operations, and the printing of money O C. open market operations, the required reserve ratio, and the printing of money O D. open market operations, last resort loans, and the required reserve ratio The required reserve ratio is the O A. minimum amount of currency that banks are...

  • There are several ways that governments can increase or decrease the money supply. Match the descriptions...

    There are several ways that governments can increase or decrease the money supply. Match the descriptions with the corresponding policy tool. It's possible that a description does not apply to any of the policy tools. Open market operations Reserve requirement Discount rate Quantitative easing Answer Bank Answer Bank a government printing more currency a central bank purchasing a large quantity of longer-term Treasury bonds an increase in government spending an increase in the percentage of deposits that banks must keep...

  • Which central bank has its exchange rate as a focus of its monetary​ policy? A. Bank...

    Which central bank has its exchange rate as a focus of its monetary​ policy? A. Bank of Canada B. European Central Bank C. Bank of England D. Federal Reserve

  • 17. If you were to survey central bankers from around the world and ask them what...

    17. If you were to survey central bankers from around the world and ask them what they believe the primary task of monetary policy should be, what would the most popular nswer likely be? A. leverage cycle B. bank runs C. fighting inflation D. bank supervision 18. Which of the following institutions determines the quantity of money in the economy as its most important task? A. U.S. Department of the Treasury B. Federal Open Market Committee C. Central Bank D....

  • 1.The Fed purchases $100,000 of U.S. government securities from One Bank. Assuming the desired reserve ratio...

    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...

  • explain and draw the use of easy monetary policy on the AD-AS model explain what occurs...

    explain and draw the use of easy monetary policy on the AD-AS model explain what occurs when The Fed "buys bonds" 1. You are given this account for a bank Assets Liabilities Reserves $450 Deposits $3000 Loans $2550 The required reserve ratio is 10% a. How much is the bank required to hold as reserves given its deposits of $3000? b. How much are its excess reserves? c. By how much can the bank increase its loans? d. Suppose a...

  • Question 1 3 pts The Federal Open Market Committee (FOMC), buys and sells securities on a...

    Question 1 3 pts The Federal Open Market Committee (FOMC), buys and sells securities on a market. O primary O product O factor O secondary Next Not saved Submit Quiz D Question 2 3 pts Which of the following terms is used to describe the proportion of deposits that banks are legally required to deposit with the central bank? Time Attemp 59 Mi O discount requirements O reserve requirements O monetary requirements O deposit requirements Next Previous Not saved Submit...

  • What are the three main tools the Federal Reserve (Fed) has at its disposal to carry out monetary policy? setting...

    What are the three main tools the Federal Reserve (Fed) has at its disposal to carry out monetary policy? setting the discount rate, increasing taxes, and building highways conducting open market operations, increasing spending by the federal government, and decreasing taxes conducting open market operations, setting the discount rate, and paying interest on reserves O paying interest on reserves, conducting open market operations, and controlling money demand During the financial crisis of 2007-2008, the Fed engaged in lending to certain...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT