Question 1 and Question 2Homework Answers
Q1. Open market operation works via buying or selling of bonds in order to increase/decrease the amount of money in circulation. It can be both expansionary and contractionary.
Under contractionary open market operations, the Federal bank sells government bonds and securities in the market in order to decrease the amount of money in circulation, thus slowing the growth of the economy.
Ans. (b) Use open market operations to sell bonds and securities
Q2. Quantitative easing is the process of infusing money into the market via purchase of government bonds and other financial assets. It attempts to stimulate the economy by buying long-term securities.
Ans. (d)
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Question 1 and Question 2
QUESTION 1 Which of the following describes what the Reserve Bank...
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...
You are on question 16 OT 16 Which of the following statements about quantitative easing describes...
You are on question 16 OT 16 Which of the following statements about quantitative easing describes it best? O Quantitative easing means encouraging government agencies to maintain income maintenance programs through improving credit conditions. O Quantitative easing means fostering private household consumption. Quantitative easing means encouraging private firms to increase capital expansion projects through improving credit conditions. Previous - Next Submit ECON 2105 Final...docx - Progress You are on question 10 of 16 An open market sale of US Treasury...
5. The Federal Reserve's organization There are Federal Reserve regional banks. Which of the following is...
5. The Federal Reserve's organization There are Federal Reserve regional banks. Which of the following is a responsibility of the Federal Open Market Committee (FOMC)? Issuing mortgages to homeowners Making decisions regarding monetary policy Buying and selling stocks The Federal Reserve's primary tool for changing the money supply is the U.S. economy (the money supply), the Federal Reserve will In order to increase the number of dollars in government bonds. 5. The Federal Reserve's organization There are Federal Reserve regional...
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...
QUESTION 53 When the central bank or the Fed enacts this, it creates money and then...
QUESTION 53 When the central bank or the Fed enacts this, it creates money and then buying bonds or other financial assets from banks to help stimulate growth. 1. Qualitative Easing 2. Lowers interest rates nimi 3. Quantitative Easing 4. raises interest rates QUESTION 54 This involves the decision that a government makes regarding the collection of revenue, through taxation and about spending that revenue. 1. quantitative easing 2. Fiscal Policy 3. lowering of interest rates 4. monetary policy This...
Which of the following is NOT consistent with tightening of monetary policy? A. A central bank...
Which of the following is NOT consistent with tightening of monetary policy? A. A central bank sells more government securities to banks. B. The country’s foreign currency may increase in value. C. Interest rates fall. D. Bank lending is reduced. E. Open-market operations may reduce banks’ supplies of funds and liquidity in a financial system. Monetary policy is preferred to fiscal policy as a _______ policy instrument because it can be adjusted more _________ than fiscal policy. A. short-term, quickly....
answer please 25. A bank borrows money from another bank on an overnight basis to meet...
answer please
25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....
The Reserve Bank of Australia manages the supply of cash on a daily basis to: ensure...
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 demand for funds sterilise deficits and surpluses of cash in the financial system ensure that there are no large injections of cash into or withdrawals of cash out of the financial system ensure that the interest rate changes to create equilibrium in the money market. If the Reserve Bank of Australia sells bonds and securities...
Which of the following is a difference between "quantitative easing and ordinary open-market operations? Multiple Choice...
Which of the following is a difference between "quantitative easing and ordinary open-market operations? Multiple Choice There is no difference between the two policy tools Open-market operations are focused exclusively on US govemnment bonds,quantitative easing also includes the buying and selling of debt issued by govemment agencies and government-sponsored entities Quantitetive essing is done in order to lower interest rates open-market operations are merely intended to increase bank reserves Open-market operations involve forwerd commitment quantnative easing i s intentionally vegue...
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...
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...
You are on question 16 OT 16 Which of the following statements about quantitative easing describes it best? O Quantitative easing means encouraging government agencies to maintain income maintenance programs through improving credit conditions. O Quantitative easing means fostering private household consumption. Quantitative easing means encouraging private firms to increase capital expansion projects through improving credit conditions. Previous - Next Submit ECON 2105 Final...docx - Progress You are on question 10 of 16 An open market sale of US Treasury...
5. The Federal Reserve's organization There are Federal Reserve regional banks. Which of the following is a responsibility of the Federal Open Market Committee (FOMC)? Issuing mortgages to homeowners Making decisions regarding monetary policy Buying and selling stocks The Federal Reserve's primary tool for changing the money supply is the U.S. economy (the money supply), the Federal Reserve will In order to increase the number of dollars in government bonds. 5. The Federal Reserve's organization There are Federal Reserve regional...
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...
QUESTION 53 When the central bank or the Fed enacts this, it creates money and then buying bonds or other financial assets from banks to help stimulate growth. 1. Qualitative Easing 2. Lowers interest rates nimi 3. Quantitative Easing 4. raises interest rates QUESTION 54 This involves the decision that a government makes regarding the collection of revenue, through taxation and about spending that revenue. 1. quantitative easing 2. Fiscal Policy 3. lowering of interest rates 4. monetary policy This...
answer please
25. A bank borrows money from another bank on an overnight basis to meet reserve requirements in the: a. stock market. b. bond market. c. Federal funds market. d. U.S.Treasury bill market. 26. Fiscal policy in the United States is the responsibility of the: a. US Treasury b. Federal Reserve c. Internal Revenue Service d. US Congress and Administration 27. Monetary policy in the United States is the responsibility of the: b. Federal Reserve a. US Treasury c....
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 demand for funds sterilise deficits and surpluses of cash in the financial system ensure that there are no large injections of cash into or withdrawals of cash out of the financial system ensure that the interest rate changes to create equilibrium in the money market. If the Reserve Bank of Australia sells bonds and securities...
Which of the following is a difference between "quantitative easing and ordinary open-market operations? Multiple Choice There is no difference between the two policy tools Open-market operations are focused exclusively on US govemnment bonds,quantitative easing also includes the buying and selling of debt issued by govemment agencies and government-sponsored entities Quantitetive essing is done in order to lower interest rates open-market operations are merely intended to increase bank reserves Open-market operations involve forwerd commitment quantnative easing i s intentionally vegue...
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...
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