Homework Answers
Question
Open market operations is an instrument or tool of monetary policy.
This tool is used by the central bank to impact the money supply in order to negate the impact of business cycle fluctuations on the economy.
Open market operations involve buying and selling of government securities by the central bank.
When the central bank wants to reduce money supply, it sells the government securities.
When the central bank wants to increase money supply, it buys the government securities.
Hence, the correct answer is the option (3) [Open market operations involve the purchase and sale of government securities].
Add Answer to:
BACK TO ASSIGNMENT OVERVIEW Assignment: Federal Open Market Committee (FOM Explain the Federal Open Market Committee...
← BACK TO ASSIGNMENT OVERVIEW Assignment: Federal Open Market Committee Explain the Federal Open Market Committee,...
← BACK TO ASSIGNMENT OVERVIEW Assignment: Federal Open Market Committee Explain the Federal Open Market Committee, Open Market Operations, and the Federal Funds Rate Question Of the following, which is the most commonly used tool of monetary policy in the United States? Select the correct answer below O open market operations O changing reserve requirements O changing the discount rate O changing tax revenues FEEDBACK MORE INST Content attribution REDESIGN READY FO
8. Federal funds rate targeting Aa Aa In conducting monetary policy, the Federal Open Market Committee (FOMC) targets a Federal funds rate and the Federal Reserve Bank of New York uses open-marke...
8. Federal funds rate targeting Aa Aa In conducting monetary policy, the Federal Open Market Committee (FOMC) targets a Federal funds rate and the Federal Reserve Bank of New York uses open-market operations to achieve and maintain the target rate. Suppose that the following graph shows the demand for Federal funds. Use the orange line (square symbols) to plot the supply of Federal funds (also called "the supply of excess reserves") when the FOMC targets a Federal funds rate of...
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...
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A)...
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A) the chair of the Board of Governors along with the 12 presidents of the Fede ent of the New York al Reserve System along with Banks. B) the seven members of the Board of Governors along with the president of the Federal Reserve Bank. C) the seven members of the Board of Governors of the Federal Reserve S the three members of the Council...
A central back engages in tight monetary policy in order to prevent inflation from undermining economic...
A central back engages in tight monetary policy in order to prevent inflation from undermining economic growth. Shift the aggregate demand (AD) curve on the graph below to show the impact of this policy on the economy. Provide your answer below: Price Level Aggregate Supply Aggregate Demand Real GDP QUESTION 25 - 1 POINT A healthy economic climate usually involves some sort of market orientation at the making level. individual, or firm decision- Select the correct answer below: O macroeconomic...
14) Among the members of the Federal Open Market Committee A) is the Secretary of the...
14) Among the members of the Federal Open Market Committee A) is the Secretary of the Treasury. B) the New York Federal Reserve Bank President. C) are the seven members of the Board of Governors of the Fed. D) A and C E) B and C
50) The Federal Open Market Committee A) is the main policy-making organ of the Federal Reserve....
50) The Federal Open Market Committee A) is the main policy-making organ of the Federal Reserve. B) is headed by the president of the New York Federal Reserve Bank. C) consists of the Fed chairman and the 12 regional bank presidents. D) meets every week to review the state of the economy 50) 51) When the quantity of money demanded is greater than the quantity of moneyupplied, people 1) bonds and the interest rate A) buy; falls B) sell; falls...
1) The Fed carries out its open market operations through Select one: A. the office of...
1) The Fed carries out its open market operations through Select one: A. the office of the Comptroller of the Currency and the largest U.S. money banks. B. the Desk of the NY District Bank and its network of authorized securities dealers. C. U.S. securities firms buying and selling stocks, bonds, and government securities. D. the New York Stock Exchange and affiliated stock brokers. 2) The Federal Reserve is a quasi-independent government agency directly under the authority of the Select...
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...
Suppose the Federal Open Market Committee decides decrease the target federal funds rate from 2-2.25% to...
Suppose the Federal Open Market Committee decides decrease the target federal funds rate from 2-2.25% to 1.5%, analyze: (1) How the financial markets will be affected, including money market, bond market, stock market, mortgage market, foreign exchange market. (2) How an American investor who currently holds U.S. bonds, U.S. stocks, eurodenominated stocks should adjust his/her portfolio.
← BACK TO ASSIGNMENT OVERVIEW Assignment: Federal Open Market Committee Explain the Federal Open Market Committee, Open Market Operations, and the Federal Funds Rate Question Of the following, which is the most commonly used tool of monetary policy in the United States? Select the correct answer below O open market operations O changing reserve requirements O changing the discount rate O changing tax revenues FEEDBACK MORE INST Content attribution REDESIGN READY FO
8. Federal funds rate targeting Aa Aa In conducting monetary policy, the Federal Open Market Committee (FOMC) targets a Federal funds rate and the Federal Reserve Bank of New York uses open-market operations to achieve and maintain the target rate. Suppose that the following graph shows the demand for Federal funds. Use the orange line (square symbols) to plot the supply of Federal funds (also called "the supply of excess reserves") when the FOMC targets a Federal funds rate of...
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...
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A) the chair of the Board of Governors along with the 12 presidents of the Fede ent of the New York al Reserve System along with Banks. B) the seven members of the Board of Governors along with the president of the Federal Reserve Bank. C) the seven members of the Board of Governors of the Federal Reserve S the three members of the Council...
A central back engages in tight monetary policy in order to prevent inflation from undermining economic growth. Shift the aggregate demand (AD) curve on the graph below to show the impact of this policy on the economy. Provide your answer below: Price Level Aggregate Supply Aggregate Demand Real GDP QUESTION 25 - 1 POINT A healthy economic climate usually involves some sort of market orientation at the making level. individual, or firm decision- Select the correct answer below: O macroeconomic...
14) Among the members of the Federal Open Market Committee A) is the Secretary of the Treasury. B) the New York Federal Reserve Bank President. C) are the seven members of the Board of Governors of the Fed. D) A and C E) B and C
50) The Federal Open Market Committee A) is the main policy-making organ of the Federal Reserve. B) is headed by the president of the New York Federal Reserve Bank. C) consists of the Fed chairman and the 12 regional bank presidents. D) meets every week to review the state of the economy 50) 51) When the quantity of money demanded is greater than the quantity of moneyupplied, people 1) bonds and the interest rate A) buy; falls B) sell; falls...
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...
Most questions answered within 3 hours.
-
Explain the reasons for enacting the Dodd-Frank Act. What are
some of the implications of this...
asked 2 minutes from now -
There are three things that contribute to the significance of
differences. The following is NOT one...
asked 11 seconds from now -
What do you regard as the most pressing questions HRM
should tackle? Why do you see...
asked 2 seconds ago -
The Little Coffee Company (LC) is considering entering into the
coffee-brewing business, which is dominated by...
asked 6 minutes ago -
A glowing blackbody is at a temperature of 4.325×103 K. For this
temperature the peak in...
asked 6 minutes ago -
Need help making this Java program:
package assignment1;
public class Fibonacci {
// Exercise 1: Fibonacci...
asked 48 minutes ago -
5) Suppose a price floor on sparkling wine is proposed by the
Health Minister of the...
asked 15 minutes ago -
how
are monotremes, cyanodonts , and synapsids related ?
asked 24 minutes ago -
Webster Corporation is preparing a master budget for the first
quarter of the year. The company...
asked 32 minutes ago -
Exercise Technology
The relationship of the technology ( Positive Effects ) to
society and the
world....
asked 26 minutes ago -
NEED THE SQL QUERIES ASAP PLEASE(LIKE 1 HOUR) THE ONES WITH ID
ARE PRIMARY KEYS OR...
asked 23 minutes ago -
1. As we are nearing the end of our class, consider how
communication currently plays a...
asked 36 minutes ago