Question

In utilizing unconventional monetary policy in 2009, the Federal Reserve purchased a. real estate worth more...

In utilizing unconventional monetary policy in 2009, the Federal Reserve purchased

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

Answer

Option c

over $1 trillion in mortgage-backed securities

The Fed purchased over $1 trillion in mortgage-backed securities to control the 2008 credit crisis Also it purchased around 600 billion in 2010.

Add a comment
Know the answer?
Add Answer to:
In utilizing unconventional monetary policy in 2009, the Federal Reserve purchased a. real estate worth more...
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
  • Identify each government policy as an example of Expansionary Fiscal Policy or Contractionary Fiscal Policy, [Choose]...

    Identify each government policy as an example of Expansionary Fiscal Policy or Contractionary Fiscal Policy, [Choose] The Coronavirus Aid, Relief, and Economic Security (CARES) Act, 2020 < American Recovery and Reinvestment Act, 2009 [Choose] < [Choose] Elimination of the State and Local Tax (SALT) deduction from annual income taxes $100 increase in vehicle registration fees [Choose ] Troubled Asset Relief Program (TARP), 2008 [Choose] Identify whether each scenario is an example of Expansionary Monetary Policy or Restrictive Monetary Policy. The...

  • Suppose that following a policy meeting in early 2020, the Federal Reserve made an announcement that...

    Suppose that following a policy meeting in early 2020, the Federal Reserve made an announcement that it would purchase up to $300 billion of longer-term Treasury securities over the following six months. What effect might this policy have on the yield curve?

  • 24) Assume that the Federal Reserve purchases $600 billion of long-term Treasury bonds. Explain the effect...

    24) Assume that the Federal Reserve purchases $600 billion of long-term Treasury bonds. Explain the effect of this policy on the long-term interest rate using a bo graph. What would happen to investment, essentially? (5 points)

  • If you were the Federal Reserve chairman, which monetary policy would you advise the federal government...

    If you were the Federal Reserve chairman, which monetary policy would you advise the federal government to adopt? Explain why. o Return to the classical gold standard o A gold price targeting policy o A monetary rule (i.e., increase the M2 money supply at a steady rate equal to the long-term real GDP growth rate, and allow interest rates to fluctuate without interference. o Price inflation target, i.e., set a maximum price inflation target, based on the Consumer Price Index...

  • Let’s say the Federal Reserve buys $20 Billion in bonds from private banks: *Total reserve requirement...

    Let’s say the Federal Reserve buys $20 Billion in bonds from private banks: *Total reserve requirement = 0.10 x $1Trillion = $100 Billion What is the total amount (in $) of reserves that banks can lend? Using the simple deposit multiplier, how much additional money (M1) is created by this process? What will happen to the Federal Funds Rate, the prime rate, and other nominal interest rates in the economy? (Go up, down, stay the same?) Why? If the price...

  • Question 4 (30 points) The following entries (in millions of dollars) are from the balance sheet...

    Question 4 (30 points) The following entries (in millions of dollars) are from the balance sheet of Taxon National Bank (TNB) in 2018: $40 Municipal bonds 60 Bank building Real estate loans 30 U.S. Treasury bills 50 Demand deposits 70 Mortgage-backed securities 80 Negotiable Order of Withdrawal 90 Savings accounts 20 Reserve deposits with Federal Reserve 50 Cash items in the process of collection 30 Loans from other banks 70 Commercial & industrial loans 100 Discount loans 30 Long-term bonds...

  • Which of the following describes what the Reserve Bank of Australia would do to pursue an...

    Which of the following describes what the Reserve Bank of Australia would do to pursue an contractionary monetary policy? Use open market operations to buy bonds and securities. Use open market operations to sell bonds and securities Use open market operations to increase the overnight cash rate. Increase interest rates on mortgages and corporate loans. The Reserve Bank of Australia manages the supply of cash on a daily basis to ensure that every bank has sufficient cash to meet the...

  • 9 In the U.S econormy the money supply is cot A) U.S Treasury. B) Federal Reserve...

    9 In the U.S econormy the money supply is cot A) U.S Treasury. B) Federal Reserve System D) Senate Committee on Banking and Finance. 10. Ceteris paribus, if the Fed raised the required reserve ratio A) Banks could increase their lending B) The Federal funds interest rate would rise. The size of the monetary multiplier would decrease. D) The size of the monetary multiplier would increase. 11. Money is created when A) Loans are made. Checks written on one bank...

  • 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...

  • 18 Congress has the legal right to force the Federal Reserve Bank to accept and carry...

    18 Congress has the legal right to force the Federal Reserve Bank to accept and carry out their suggested recommendations regarding Monetary Policy. 8 03:57:44 True or False True False 19 The Federal Reserve Bank is the chief regulatory agency among all of the financial regulatory agencies like the SEC, FDIC, etc... The Federal Reserve Bank has the most regulatory power. 03:57:40 Multiple Choice This is foise - the US Treasury Department has the most regulatory power in the U.S....

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